Correlation Between Cuentas and OLB
Can any of the company-specific risk be diversified away by investing in both Cuentas and OLB 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 Cuentas and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuentas and OLB Group, you can compare the effects of market volatilities on Cuentas and OLB 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 Cuentas with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuentas and OLB.
Diversification Opportunities for Cuentas and OLB
Significant diversification
The 3 months correlation between Cuentas and OLB is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cuentas and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Cuentas 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 Cuentas are associated (or correlated) with OLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLB Group has no effect on the direction of Cuentas i.e., Cuentas and OLB go up and down completely randomly.
Pair Corralation between Cuentas and OLB
If you would invest 220.00 in OLB Group on August 25, 2024 and sell it today you would lose (25.00) from holding OLB Group or give up 11.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cuentas vs. OLB Group
Performance |
| Timeline |
| Cuentas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OLB Group |
Cuentas and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuentas and OLB
The main advantage of trading using opposite Cuentas and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuentas position performs unexpectedly, OLB 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 OLB will offset losses from the drop in OLB's long position.| Cuentas vs. Auddia Inc | Cuentas vs. Bridgeline Digital | Cuentas vs. Mediaco Holding | Cuentas vs. Digital Brands Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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