Correlation Between OOhMedia and Steamships Trading
Can any of the company-specific risk be diversified away by investing in both OOhMedia and Steamships Trading 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 Steamships Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Steamships Trading, you can compare the effects of market volatilities on OOhMedia and Steamships Trading 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 Steamships Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Steamships Trading.
Diversification Opportunities for OOhMedia and Steamships Trading
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OOhMedia and Steamships is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Steamships Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steamships Trading 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 Steamships Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steamships Trading has no effect on the direction of OOhMedia i.e., OOhMedia and Steamships Trading go up and down completely randomly.
Pair Corralation between OOhMedia and Steamships Trading
Assuming the 90 days trading horizon oOhMedia is expected to generate 6.68 times more return on investment than Steamships Trading. However, OOhMedia is 6.68 times more volatile than Steamships Trading. It trades about 0.03 of its potential returns per unit of risk. Steamships Trading is currently generating about -0.08 per unit of risk. If you would invest 129.00 in oOhMedia on September 5, 2024 and sell it today you would earn a total of 2.00 from holding oOhMedia or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Steamships Trading
Performance |
| Timeline |
| oOhMedia |
| Steamships Trading |
OOhMedia and Steamships Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Steamships Trading
The main advantage of trading using opposite OOhMedia and Steamships Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia position performs unexpectedly, Steamships Trading 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 Steamships Trading will offset losses from the drop in Steamships Trading's long position.| OOhMedia vs. AiMedia Technologies | OOhMedia vs. Kneomedia | OOhMedia vs. TTG Fintech | OOhMedia vs. Thorney Technologies |
| Steamships Trading vs. Aneka Tambang Tbk | Steamships Trading vs. ANZ Group Holdings | Steamships Trading vs. Australia and New | Steamships Trading vs. ANZ Group Holdings |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |