Correlation Between Domo and Oblong
Can any of the company-specific risk be diversified away by investing in both Domo 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 Domo and Oblong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Domo Inc and Oblong Inc, you can compare the effects of market volatilities on Domo 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 Domo with a short position of Oblong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Domo and Oblong.
Diversification Opportunities for Domo and Oblong
Good diversification
The 3 months correlation between Domo and Oblong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Domo Inc and Oblong Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oblong Inc and Domo 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 Domo Inc 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 Domo i.e., Domo and Oblong go up and down completely randomly.
Pair Corralation between Domo and Oblong
Given the investment horizon of 90 days Domo Inc is expected to generate 0.59 times more return on investment than Oblong. However, Domo Inc is 1.68 times less risky than Oblong. It trades about 0.45 of its potential returns per unit of risk. Oblong Inc is currently generating about 0.09 per unit of risk. If you would invest 726.00 in Domo Inc on November 18, 2024 and sell it today you would earn a total of 179.00 from holding Domo Inc or generate 24.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Domo Inc vs. Oblong Inc
Performance |
| Timeline |
| Domo Inc |
| Oblong Inc |
Domo and Oblong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Domo and Oblong
The main advantage of trading using opposite Domo and Oblong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Domo 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.The idea behind Domo Inc and Oblong Inc 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.| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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