Correlation Between OOhMedia and Pacific Current
Can any of the company-specific risk be diversified away by investing in both OOhMedia and Pacific Current at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining OOhMedia and Pacific Current into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Pacific Current Group, you can compare the effects of market volatilities on OOhMedia and Pacific Current and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OOhMedia with a short position of Pacific Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Pacific Current.
Diversification Opportunities for OOhMedia and Pacific Current
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between OOhMedia and Pacific is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Pacific Current Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Current Group and OOhMedia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on oOhMedia are associated (or correlated) with Pacific Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Current Group has no effect on the direction of OOhMedia i.e., OOhMedia and Pacific Current go up and down completely randomly.
Pair Corralation between OOhMedia and Pacific Current
Assuming the 90 days trading horizon oOhMedia is expected to under-perform the Pacific Current. In addition to that, OOhMedia is 1.38 times more volatile than Pacific Current Group. It trades about -0.04 of its total potential returns per unit of risk. Pacific Current Group is currently generating about 0.05 per unit of volatility. If you would invest 1,006 in Pacific Current Group on September 3, 2024 and sell it today you would earn a total of 78.00 from holding Pacific Current Group or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Pacific Current Group
Performance |
| Timeline |
| oOhMedia |
| Pacific Current Group |
OOhMedia and Pacific Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Pacific Current
The main advantage of trading using opposite OOhMedia and Pacific Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia position performs unexpectedly, Pacific Current can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pacific Current will offset losses from the drop in Pacific Current's long position.| OOhMedia vs. Vulcan Steel | OOhMedia vs. Champion Iron | OOhMedia vs. The Environmental Group | OOhMedia vs. Nufarm Finance NZ |
| Pacific Current vs. Ainsworth Game Technology | Pacific Current vs. Medical Developments International | Pacific Current vs. oOhMedia | Pacific Current vs. Seven West Media |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |