Correlation Between MondayCom and OLB
Can any of the company-specific risk be diversified away by investing in both MondayCom 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 MondayCom and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MondayCom and OLB Group, you can compare the effects of market volatilities on MondayCom 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 MondayCom with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MondayCom and OLB.
Diversification Opportunities for MondayCom and OLB
Significant diversification
The 3 months correlation between MondayCom and OLB is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MondayCom and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and MondayCom 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 MondayCom 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 MondayCom i.e., MondayCom and OLB go up and down completely randomly.
Pair Corralation between MondayCom and OLB
Given the investment horizon of 90 days MondayCom is expected to generate 0.4 times more return on investment than OLB. However, MondayCom is 2.49 times less risky than OLB. It trades about 0.01 of its potential returns per unit of risk. OLB Group is currently generating about -0.06 per unit of risk. If you would invest 29,735 in MondayCom on August 29, 2024 and sell it today you would lose (435.00) from holding MondayCom or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MondayCom vs. OLB Group
Performance |
| Timeline |
| MondayCom |
| OLB Group |
MondayCom and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MondayCom and OLB
The main advantage of trading using opposite MondayCom and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MondayCom 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 MondayCom 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |