Correlation Between Domo and OLB
Can any of the company-specific risk be diversified away by investing in both Domo 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 Domo and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Domo Inc and OLB Group, you can compare the effects of market volatilities on Domo 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 Domo with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Domo and OLB.
Diversification Opportunities for Domo and OLB
Excellent diversification
The 3 months correlation between Domo and OLB is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Domo Inc and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group 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 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 Domo i.e., Domo and OLB go up and down completely randomly.
Pair Corralation between Domo and OLB
Given the investment horizon of 90 days Domo Inc is expected to under-perform the OLB. In addition to that, Domo is 1.21 times more volatile than OLB Group. It trades about -0.18 of its total potential returns per unit of risk. OLB Group is currently generating about -0.05 per unit of volatility. If you would invest 127.00 in OLB Group on January 7, 2025 and sell it today you would lose (7.00) from holding OLB Group or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Domo Inc vs. OLB Group
Performance |
| Timeline |
| Domo Inc |
| OLB Group |
Domo and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Domo and OLB
The main advantage of trading using opposite Domo and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Domo 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.The idea behind Domo Inc and OLB Group 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.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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