Correlation Between Friendable and OLB
Can any of the company-specific risk be diversified away by investing in both Friendable 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 Friendable and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Friendable and OLB Group, you can compare the effects of market volatilities on Friendable 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 Friendable with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Friendable and OLB.
Diversification Opportunities for Friendable and OLB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Friendable and OLB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Friendable and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Friendable 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 Friendable 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 Friendable i.e., Friendable and OLB go up and down completely randomly.
Pair Corralation between Friendable and OLB
Given the investment horizon of 90 days Friendable is expected to generate 0.95 times more return on investment than OLB. However, Friendable is 1.05 times less risky than OLB. It trades about 0.03 of its potential returns per unit of risk. OLB Group is currently generating about -0.05 per unit of risk. If you would invest 0.01 in Friendable on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Friendable or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Friendable vs. OLB Group
Performance |
| Timeline |
| Friendable |
| OLB Group |
Friendable and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Friendable and OLB
The main advantage of trading using opposite Friendable and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Friendable 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.| Friendable vs. RenoWorks Software | Friendable vs. LifeSpeak | Friendable vs. 01 Communique Laboratory | Friendable vs. On4 Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |