Correlation Between Oblong and Agora
Can any of the company-specific risk be diversified away by investing in both Oblong and Agora 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 Oblong and Agora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Agora Inc, you can compare the effects of market volatilities on Oblong and Agora 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 Oblong with a short position of Agora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Agora.
Diversification Opportunities for Oblong and Agora
Good diversification
The 3 months correlation between Oblong and Agora is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Agora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agora Inc and Oblong 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 Oblong Inc are associated (or correlated) with Agora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agora Inc has no effect on the direction of Oblong i.e., Oblong and Agora go up and down completely randomly.
Pair Corralation between Oblong and Agora
Given the investment horizon of 90 days Oblong Inc is expected to under-perform the Agora. In addition to that, Oblong is 1.23 times more volatile than Agora Inc. It trades about -0.02 of its total potential returns per unit of risk. Agora Inc is currently generating about 0.09 per unit of volatility. If you would invest 251.00 in Agora Inc on August 24, 2024 and sell it today you would earn a total of 205.00 from holding Agora Inc or generate 81.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oblong Inc vs. Agora Inc
Performance |
| Timeline |
| Oblong Inc |
| Agora Inc |
Oblong and Agora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Agora
The main advantage of trading using opposite Oblong and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Agora 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 Agora will offset losses from the drop in Agora's long position.| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. Bm Technologies | Oblong vs. ePlus inc |
| Agora vs. Aquagold International | Agora vs. Small Cap Core | Agora vs. Morningstar Unconstrained Allocation | Agora vs. SPACE |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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