Correlation Between Gold Road and OOhMedia
Can any of the company-specific risk be diversified away by investing in both Gold Road 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 Gold Road and OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and oOhMedia, you can compare the effects of market volatilities on Gold Road 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 Gold Road with a short position of OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and OOhMedia.
Diversification Opportunities for Gold Road and OOhMedia
Excellent diversification
The 3 months correlation between Gold and OOhMedia is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia and Gold Road 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 Gold Road Resources 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 Gold Road i.e., Gold Road and OOhMedia go up and down completely randomly.
Pair Corralation between Gold Road and OOhMedia
Assuming the 90 days trading horizon Gold Road Resources is expected to generate 1.34 times more return on investment than OOhMedia. However, Gold Road is 1.34 times more volatile than oOhMedia. It trades about 0.22 of its potential returns per unit of risk. oOhMedia is currently generating about -0.1 per unit of risk. If you would invest 163.00 in Gold Road Resources on September 14, 2024 and sell it today you would earn a total of 53.00 from holding Gold Road Resources or generate 32.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Gold Road Resources vs. oOhMedia
Performance |
Timeline |
Gold Road Resources |
oOhMedia |
Gold Road and OOhMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gold Road and OOhMedia
The main advantage of trading using opposite Gold Road and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road 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.Gold Road vs. Iron Road | Gold Road vs. MetalsGrove Mining | Gold Road vs. Dicker Data | Gold Road vs. Tombador Iron |
OOhMedia vs. Auctus Alternative Investments | OOhMedia vs. Platinum Asia Investments | OOhMedia vs. Garda Diversified Ppty | OOhMedia vs. Gold Road Resources |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
CEOs Directory Screen CEOs from public companies around the world | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |