Correlation Between Oblong and Bm Technologies
Can any of the company-specific risk be diversified away by investing in both Oblong and Bm Technologies 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 Bm Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Bm Technologies, you can compare the effects of market volatilities on Oblong and Bm Technologies 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 Bm Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Bm Technologies.
Diversification Opportunities for Oblong and Bm Technologies
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oblong and BMTX is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Bm Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bm Technologies 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 Bm Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bm Technologies has no effect on the direction of Oblong i.e., Oblong and Bm Technologies go up and down completely randomly.
Pair Corralation between Oblong and Bm Technologies
Given the investment horizon of 90 days Oblong Inc is expected to generate 26.9 times more return on investment than Bm Technologies. However, Oblong is 26.9 times more volatile than Bm Technologies. It trades about 0.09 of its potential returns per unit of risk. Bm Technologies is currently generating about 0.24 per unit of risk. If you would invest 360.00 in Oblong Inc on November 18, 2024 and sell it today you would earn a total of 22.00 from holding Oblong Inc or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Oblong Inc vs. Bm Technologies
Performance |
| Timeline |
| Oblong Inc |
| Bm Technologies |
Risk-Adjusted Performance
Good
Weak | Strong |
Oblong and Bm Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Bm Technologies
The main advantage of trading using opposite Oblong and Bm Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Bm Technologies 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 Bm Technologies will offset losses from the drop in Bm Technologies' long position.| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. ePlus inc | Oblong vs. Infobird Co |
| Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |