Correlation Between Talisman Mining and OOhMedia
Can any of the company-specific risk be diversified away by investing in both Talisman Mining and OOhMedia 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 Talisman Mining and OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talisman Mining and oOhMedia, you can compare the effects of market volatilities on Talisman Mining and OOhMedia 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 Talisman Mining with a short position of OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talisman Mining and OOhMedia.
Diversification Opportunities for Talisman Mining and OOhMedia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Talisman and OOhMedia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Talisman Mining and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia and Talisman Mining 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 Talisman Mining are associated (or correlated) with OOhMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of oOhMedia has no effect on the direction of Talisman Mining i.e., Talisman Mining and OOhMedia go up and down completely randomly.
Pair Corralation between Talisman Mining and OOhMedia
Assuming the 90 days trading horizon Talisman Mining is expected to under-perform the OOhMedia. In addition to that, Talisman Mining is 1.32 times more volatile than oOhMedia. It trades about -0.18 of its total potential returns per unit of risk. oOhMedia is currently generating about 0.0 per unit of volatility. If you would invest 120.00 in oOhMedia on November 8, 2024 and sell it today you would lose (1.00) from holding oOhMedia or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talisman Mining vs. oOhMedia
Performance |
| Timeline |
| Talisman Mining |
| oOhMedia |
Talisman Mining and OOhMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talisman Mining and OOhMedia
The main advantage of trading using opposite Talisman Mining and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talisman Mining position performs unexpectedly, OOhMedia 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 OOhMedia will offset losses from the drop in OOhMedia's long position.| Talisman Mining vs. Charter Hall Retail | Talisman Mining vs. Viva Leisure | Talisman Mining vs. Embark Education Group | Talisman Mining vs. Charter Hall Education |
| OOhMedia vs. Platinum Asset Management | OOhMedia vs. Pinnacle Investment Management | OOhMedia vs. Ainsworth Game Technology | OOhMedia vs. Cleanaway Waste Management |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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