Correlation Between Oblong and Hitek Global
Can any of the company-specific risk be diversified away by investing in both Oblong and Hitek Global 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 Hitek Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Hitek Global Ordinary, you can compare the effects of market volatilities on Oblong and Hitek Global 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 Hitek Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Hitek Global.
Diversification Opportunities for Oblong and Hitek Global
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oblong and Hitek is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Hitek Global Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitek Global Ordinary 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 Hitek Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitek Global Ordinary has no effect on the direction of Oblong i.e., Oblong and Hitek Global go up and down completely randomly.
Pair Corralation between Oblong and Hitek Global
Given the investment horizon of 90 days Oblong Inc is expected to under-perform the Hitek Global. In addition to that, Oblong is 2.96 times more volatile than Hitek Global Ordinary. It trades about -0.04 of its total potential returns per unit of risk. Hitek Global Ordinary is currently generating about -0.04 per unit of volatility. If you would invest 139.00 in Hitek Global Ordinary on August 27, 2024 and sell it today you would lose (3.00) from holding Hitek Global Ordinary or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oblong Inc vs. Hitek Global Ordinary
Performance |
| Timeline |
| Oblong Inc |
| Hitek Global Ordinary |
Oblong and Hitek Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Hitek Global
The main advantage of trading using opposite Oblong and Hitek Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Hitek Global 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 Hitek Global will offset losses from the drop in Hitek Global's long position.| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. Bm Technologies | Oblong vs. ePlus inc |
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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