Correlation Between Suncorp and OOhMedia

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

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

Diversification Opportunities for Suncorp and OOhMedia

0.0

Correlation Coefficient

Suncorp  OOhMedia

Pay attention - limited upside

The 3 months correlation between Suncorp and OOhMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Suncorp Group and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia and Suncorp 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 Suncorp Group 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 Suncorp i.e., Suncorp and OOhMedia go up and down completely randomly.

Pair Corralation between Suncorp and OOhMedia

If you would invest (100.00) in Suncorp Group on October 4, 2024 and sell it today you would earn a total of  100.00  from holding Suncorp Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Suncorp Group  vs.  oOhMedia

Suncorp Group

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Suncorp Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Suncorp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

oOhMedia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days oOhMedia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, OOhMedia is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Suncorp and OOhMedia

The main advantage of trading using opposite Suncorp and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suncorp 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 Suncorp Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.