Correlation Between Ziff Davis and OFX Group
Can any of the company-specific risk be diversified away by investing in both Ziff Davis and OFX Group 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 Ziff Davis and OFX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ziff Davis and OFX Group Ltd, you can compare the effects of market volatilities on Ziff Davis and OFX Group 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 Ziff Davis with a short position of OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziff Davis and OFX Group.
Diversification Opportunities for Ziff Davis and OFX Group
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ziff and OFX is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ziff Davis and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group and Ziff Davis 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 Ziff Davis are associated (or correlated) with OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Ziff Davis i.e., Ziff Davis and OFX Group go up and down completely randomly.
Pair Corralation between Ziff Davis and OFX Group
If you would invest 435.00 in OFX Group Ltd on October 25, 2024 and sell it today you would earn a total of 0.00 from holding OFX Group Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziff Davis vs. OFX Group Ltd
Performance |
| Timeline |
| Ziff Davis |
| OFX Group |
Ziff Davis and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziff Davis and OFX Group
The main advantage of trading using opposite Ziff Davis and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziff Davis position performs unexpectedly, OFX Group 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 OFX Group will offset losses from the drop in OFX Group's long position.| Ziff Davis vs. Interpublic Group of | Ziff Davis vs. Criteo Sa | Ziff Davis vs. WPP PLC ADR | Ziff Davis vs. Integral Ad Science |
| OFX Group vs. Ziff Davis | OFX Group vs. Weibo Corp | OFX Group vs. Tencent Music Entertainment | OFX Group vs. Molecular Partners AG |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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