Correlation Between OOhMedia and Wam Leaders
Can any of the company-specific risk be diversified away by investing in both OOhMedia and Wam Leaders 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 Wam Leaders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Wam Leaders, you can compare the effects of market volatilities on OOhMedia and Wam Leaders 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 Wam Leaders. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Wam Leaders.
Diversification Opportunities for OOhMedia and Wam Leaders
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OOhMedia and Wam is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Wam Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wam Leaders 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 Wam Leaders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wam Leaders has no effect on the direction of OOhMedia i.e., OOhMedia and Wam Leaders go up and down completely randomly.
Pair Corralation between OOhMedia and Wam Leaders
Assuming the 90 days trading horizon oOhMedia is expected to generate 2.35 times more return on investment than Wam Leaders. However, OOhMedia is 2.35 times more volatile than Wam Leaders. It trades about 0.01 of its potential returns per unit of risk. Wam Leaders is currently generating about 0.0 per unit of risk. If you would invest 123.00 in oOhMedia on September 3, 2024 and sell it today you would earn a total of 2.00 from holding oOhMedia or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Wam Leaders
Performance |
| Timeline |
| oOhMedia |
| Wam Leaders |
OOhMedia and Wam Leaders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Wam Leaders
The main advantage of trading using opposite OOhMedia and Wam Leaders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia position performs unexpectedly, Wam Leaders 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 Wam Leaders will offset losses from the drop in Wam Leaders' long position.| OOhMedia vs. Vulcan Steel | OOhMedia vs. Champion Iron | OOhMedia vs. The Environmental Group | OOhMedia vs. Nufarm Finance NZ |
| Wam Leaders vs. oOhMedia | Wam Leaders vs. Navigator Global Investments | Wam Leaders vs. BKI Investment | Wam Leaders vs. Carlton Investments |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |