Correlation Between Centuria Industrial and OOhMedia

Can any of the company-specific risk be diversified away by investing in both Centuria Industrial 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 Centuria Industrial and OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Centuria Industrial Reit and oOhMedia, you can compare the effects of market volatilities on Centuria Industrial 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 Centuria Industrial with a short position of OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and OOhMedia.

Diversification Opportunities for Centuria Industrial and OOhMedia

0.33

Correlation Coefficient

Centuria Industrial  OOhMedia

Weak diversification

The 3 months correlation between Centuria and OOhMedia is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia and Centuria Industrial 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 Centuria Industrial Reit 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 Centuria Industrial i.e., Centuria Industrial and OOhMedia go up and down completely randomly.

Pair Corralation between Centuria Industrial and OOhMedia

Assuming the 90 days trading horizon Centuria Industrial Reit is expected to under-perform the OOhMedia. But the stock apears to be less risky and, when comparing its historical volatility, Centuria Industrial Reit is 2.07 times less risky than OOhMedia. The stock trades about -0.01 of its potential returns per unit of risk. The oOhMedia is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  148.00  in oOhMedia on October 24, 2024 and sell it today you would lose (22.00) from holding oOhMedia or give up 14.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Centuria Industrial Reit  vs.  oOhMedia

Centuria Industrial Reit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Centuria Industrial Reit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

oOhMedia

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in oOhMedia are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, OOhMedia may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Centuria Industrial and OOhMedia

The main advantage of trading using opposite Centuria Industrial and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial 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.

The idea behind Centuria Industrial Reit and oOhMedia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.