Correlation Between Oblong and EGain
Can any of the company-specific risk be diversified away by investing in both Oblong and EGain 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 EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and eGain, you can compare the effects of market volatilities on Oblong and EGain 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 EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and EGain.
Diversification Opportunities for Oblong and EGain
Weak diversification
The 3 months correlation between Oblong and EGain is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain 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 EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of Oblong i.e., Oblong and EGain go up and down completely randomly.
Pair Corralation between Oblong and EGain
Given the investment horizon of 90 days Oblong Inc is expected to generate 1.56 times more return on investment than EGain. However, Oblong is 1.56 times more volatile than eGain. It trades about 0.16 of its potential returns per unit of risk. eGain is currently generating about 0.0 per unit of risk. If you would invest 368.00 in Oblong Inc on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Oblong Inc or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oblong Inc vs. eGain
Performance |
| Timeline |
| Oblong Inc |
| eGain |
Oblong and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and EGain
The main advantage of trading using opposite Oblong and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, EGain 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 EGain will offset losses from the drop in EGain's long position.| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. Bm Technologies | Oblong vs. ePlus inc |
| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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