Correlation Between Marti Technologies and OLB
Can any of the company-specific risk be diversified away by investing in both Marti Technologies 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 Marti Technologies and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marti Technologies and OLB Group, you can compare the effects of market volatilities on Marti Technologies 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 Marti Technologies with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marti Technologies and OLB.
Diversification Opportunities for Marti Technologies and OLB
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marti and OLB is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Marti Technologies and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Marti Technologies 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 Marti Technologies 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 Marti Technologies i.e., Marti Technologies and OLB go up and down completely randomly.
Pair Corralation between Marti Technologies and OLB
Considering the 90-day investment horizon Marti Technologies is expected to generate 0.28 times more return on investment than OLB. However, Marti Technologies is 3.61 times less risky than OLB. It trades about 0.02 of its potential returns per unit of risk. OLB Group is currently generating about 0.01 per unit of risk. If you would invest 207.00 in Marti Technologies on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Marti Technologies or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marti Technologies vs. OLB Group
Performance |
| Timeline |
| Marti Technologies |
| OLB Group |
Marti Technologies and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marti Technologies and OLB
The main advantage of trading using opposite Marti Technologies and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marti Technologies 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 Marti Technologies 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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