Correlation Between Oblong and EPlus
Can any of the company-specific risk be diversified away by investing in both Oblong and EPlus 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 EPlus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and ePlus inc, you can compare the effects of market volatilities on Oblong and EPlus 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 EPlus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and EPlus.
Diversification Opportunities for Oblong and EPlus
Modest diversification
The 3 months correlation between Oblong and EPlus is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and ePlus inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlus 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 EPlus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlus inc has no effect on the direction of Oblong i.e., Oblong and EPlus go up and down completely randomly.
Pair Corralation between Oblong and EPlus
Given the investment horizon of 90 days Oblong Inc is expected to generate 4.13 times more return on investment than EPlus. However, Oblong is 4.13 times more volatile than ePlus inc. It trades about 0.02 of its potential returns per unit of risk. ePlus inc is currently generating about 0.05 per unit of risk. If you would invest 675.00 in Oblong Inc on August 27, 2024 and sell it today you would lose (336.00) from holding Oblong Inc or give up 49.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oblong Inc vs. ePlus inc
Performance |
| Timeline |
| Oblong Inc |
| ePlus inc |
Oblong and EPlus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and EPlus
The main advantage of trading using opposite Oblong and EPlus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, EPlus 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 EPlus will offset losses from the drop in EPlus' 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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