Correlation Between Oblong and Latch
Can any of the company-specific risk be diversified away by investing in both Oblong and Latch 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 Latch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Latch Inc, you can compare the effects of market volatilities on Oblong and Latch 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 Latch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Latch.
Diversification Opportunities for Oblong and Latch
Very good diversification
The 3 months correlation between Oblong and Latch is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Latch Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latch 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 Latch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latch Inc has no effect on the direction of Oblong i.e., Oblong and Latch go up and down completely randomly.
Pair Corralation between Oblong and Latch
Given the investment horizon of 90 days Oblong Inc is expected to under-perform the Latch. In addition to that, Oblong is 1.1 times more volatile than Latch Inc. It trades about -0.05 of its total potential returns per unit of risk. Latch Inc is currently generating about 0.22 per unit of volatility. If you would invest 75.00 in Latch Inc on August 27, 2024 and sell it today you would earn a total of 97.00 from holding Latch Inc or generate 129.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.99% |
| Values | Daily Returns |
Oblong Inc vs. Latch Inc
Performance |
| Timeline |
| Oblong Inc |
| Latch Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oblong and Latch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Latch
The main advantage of trading using opposite Oblong and Latch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Latch 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 Latch will offset losses from the drop in Latch'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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