Correlation Between Oblong and Infobird
Can any of the company-specific risk be diversified away by investing in both Oblong and Infobird 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 Infobird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Infobird Co, you can compare the effects of market volatilities on Oblong and Infobird 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 Infobird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Infobird.
Diversification Opportunities for Oblong and Infobird
Significant diversification
The 3 months correlation between Oblong and Infobird is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Infobird Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infobird 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 Infobird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infobird has no effect on the direction of Oblong i.e., Oblong and Infobird go up and down completely randomly.
Pair Corralation between Oblong and Infobird
Given the investment horizon of 90 days Oblong Inc is expected to generate 0.84 times more return on investment than Infobird. However, Oblong Inc is 1.19 times less risky than Infobird. It trades about -0.03 of its potential returns per unit of risk. Infobird Co is currently generating about -0.04 per unit of risk. If you would invest 10,038 in Oblong Inc on August 27, 2024 and sell it today you would lose (9,699) from holding Oblong Inc or give up 96.62% 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. Infobird Co
Performance |
| Timeline |
| Oblong Inc |
| Infobird |
Oblong and Infobird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Infobird
The main advantage of trading using opposite Oblong and Infobird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Infobird 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 Infobird will offset losses from the drop in Infobird'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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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