Correlation Between Meridianlink and OLB
Can any of the company-specific risk be diversified away by investing in both Meridianlink 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 Meridianlink and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridianlink and OLB Group, you can compare the effects of market volatilities on Meridianlink 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 Meridianlink with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridianlink and OLB.
Diversification Opportunities for Meridianlink and OLB
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meridianlink and OLB is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Meridianlink and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Meridianlink 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 Meridianlink 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 Meridianlink i.e., Meridianlink and OLB go up and down completely randomly.
Pair Corralation between Meridianlink and OLB
Given the investment horizon of 90 days Meridianlink is expected to generate 0.27 times more return on investment than OLB. However, Meridianlink is 3.66 times less risky than OLB. It trades about 0.02 of its potential returns per unit of risk. OLB Group is currently generating about 0.0 per unit of risk. If you would invest 2,268 in Meridianlink on August 31, 2024 and sell it today you would earn a total of 24.00 from holding Meridianlink or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridianlink vs. OLB Group
Performance |
| Timeline |
| Meridianlink |
| OLB Group |
Meridianlink and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridianlink and OLB
The main advantage of trading using opposite Meridianlink and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridianlink 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.| Meridianlink vs. CoreCard Corp | Meridianlink vs. PROS Holdings | Meridianlink vs. Enfusion | Meridianlink vs. Paylocity Holdng |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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