Correlation Between Ocumetics Technology and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both Ocumetics Technology and Postmedia Network 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 Ocumetics Technology and Postmedia Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocumetics Technology Corp and Postmedia Network Canada, you can compare the effects of market volatilities on Ocumetics Technology and Postmedia Network 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 Ocumetics Technology with a short position of Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocumetics Technology and Postmedia Network.
Diversification Opportunities for Ocumetics Technology and Postmedia Network
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ocumetics and Postmedia is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ocumetics Technology Corp and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada and Ocumetics Technology 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 Ocumetics Technology Corp are associated (or correlated) with Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of Ocumetics Technology i.e., Ocumetics Technology and Postmedia Network go up and down completely randomly.
Pair Corralation between Ocumetics Technology and Postmedia Network
Assuming the 90 days horizon Ocumetics Technology Corp is expected to generate 1.38 times more return on investment than Postmedia Network. However, Ocumetics Technology is 1.38 times more volatile than Postmedia Network Canada. It trades about -0.14 of its potential returns per unit of risk. Postmedia Network Canada is currently generating about -0.21 per unit of risk. If you would invest 36.00 in Ocumetics Technology Corp on August 26, 2024 and sell it today you would lose (4.00) from holding Ocumetics Technology Corp or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocumetics Technology Corp vs. Postmedia Network Canada
Performance |
| Timeline |
| Ocumetics Technology Corp |
| Postmedia Network Canada |
Ocumetics Technology and Postmedia Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocumetics Technology and Postmedia Network
The main advantage of trading using opposite Ocumetics Technology and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocumetics Technology position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network's long position.| Ocumetics Technology vs. VentriPoint Diagnostics | Ocumetics Technology vs. Sirona Biochem Corp | Ocumetics Technology vs. Reliq Health Technologies | Ocumetics Technology vs. Microbix Biosystems |
| Postmedia Network vs. Evertz Technologies Limited | Postmedia Network vs. Primaris Retail RE | Postmedia Network vs. Ocumetics Technology Corp | Postmedia Network vs. Dream Office Real |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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