Correlation Between Connected Media and OFAL

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

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

Diversification Opportunities for Connected Media and OFAL

0.0

Correlation Coefficient

Connected Media  OFAL

Pay attention - limited upside

The 3 months correlation between Connected and OFAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Connected Media Tech and OFAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFAL and Connected Media 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 Connected Media Tech are associated (or correlated) with OFAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFAL has no effect on the direction of Connected Media i.e., Connected Media and OFAL go up and down completely randomly.

Pair Corralation between Connected Media and OFAL

If you would invest  0.01  in Connected Media Tech on May 27, 2025 and sell it today you would earn a total of  0.00  from holding Connected Media Tech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Connected Media Tech  vs.  OFAL

Connected Media Tech

Risk-Adjusted Performance

Weakest

Over the last 90 days Connected Media Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Connected Media is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

OFAL

Risk-Adjusted Performance

Weakest

Over the last 90 days OFAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Connected Media and OFAL

The main advantage of trading using opposite Connected Media and OFAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Connected Media position performs unexpectedly, OFAL 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 OFAL will offset losses from the drop in OFAL's long position.

The idea behind Connected Media Tech and OFAL 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.