Correlation Between Infobird and OLB
Can any of the company-specific risk be diversified away by investing in both Infobird 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 Infobird and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infobird Co and OLB Group, you can compare the effects of market volatilities on Infobird 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 Infobird with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infobird and OLB.
Diversification Opportunities for Infobird and OLB
Modest diversification
The 3 months correlation between Infobird and OLB is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Infobird Co and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Infobird 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 Infobird Co 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 Infobird i.e., Infobird and OLB go up and down completely randomly.
Pair Corralation between Infobird and OLB
Given the investment horizon of 90 days Infobird Co is expected to generate 0.56 times more return on investment than OLB. However, Infobird Co is 1.8 times less risky than OLB. It trades about 0.03 of its potential returns per unit of risk. OLB Group is currently generating about -0.02 per unit of risk. If you would invest 176.00 in Infobird Co on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Infobird Co or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infobird Co vs. OLB Group
Performance |
| Timeline |
| Infobird |
| OLB Group |
Infobird and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infobird and OLB
The main advantage of trading using opposite Infobird and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infobird 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.| Infobird vs. HeartCore Enterprises | Infobird vs. Beamr Imaging Ltd | Infobird vs. Trust Stamp | Infobird vs. CXApp Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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