Correlation Between Bm Technologies and Oblong
Can any of the company-specific risk be diversified away by investing in both Bm Technologies and Oblong 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 Bm Technologies and Oblong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bm Technologies and Oblong Inc, you can compare the effects of market volatilities on Bm Technologies and Oblong 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 Bm Technologies with a short position of Oblong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and Oblong.
Diversification Opportunities for Bm Technologies and Oblong
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BMTX and Oblong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and Oblong Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oblong Inc and Bm Technologies 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 Bm Technologies are associated (or correlated) with Oblong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oblong Inc has no effect on the direction of Bm Technologies i.e., Bm Technologies and Oblong go up and down completely randomly.
Pair Corralation between Bm Technologies and Oblong
Given the investment horizon of 90 days Bm Technologies is expected to generate 9.84 times less return on investment than Oblong. But when comparing it to its historical volatility, Bm Technologies is 26.9 times less risky than Oblong. It trades about 0.24 of its potential returns per unit of risk. Oblong Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 360.00 in Oblong Inc on November 18, 2024 and sell it today you would earn a total of 22.00 from holding Oblong Inc or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Bm Technologies vs. Oblong Inc
Performance |
| Timeline |
| Bm Technologies |
Risk-Adjusted Performance
Good
Weak | Strong |
| Oblong Inc |
Bm Technologies and Oblong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bm Technologies and Oblong
The main advantage of trading using opposite Bm Technologies and Oblong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bm Technologies position performs unexpectedly, Oblong 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 Oblong will offset losses from the drop in Oblong's long position.| Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. ePlus inc | Oblong vs. Infobird Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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