Correlation Between Oblong and Usio
Can any of the company-specific risk be diversified away by investing in both Oblong and Usio 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 Usio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Usio Inc, you can compare the effects of market volatilities on Oblong and Usio 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 Usio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Usio.
Diversification Opportunities for Oblong and Usio
Good diversification
The 3 months correlation between Oblong and Usio is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio 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 Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of Oblong i.e., Oblong and Usio go up and down completely randomly.
Pair Corralation between Oblong and Usio
Given the investment horizon of 90 days Oblong Inc is expected to under-perform the Usio. In addition to that, Oblong is 2.28 times more volatile than Usio Inc. It trades about -0.02 of its total potential returns per unit of risk. Usio Inc is currently generating about 0.21 per unit of volatility. If you would invest 140.00 in Usio Inc on August 28, 2024 and sell it today you would earn a total of 17.00 from holding Usio Inc or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oblong Inc vs. Usio Inc
Performance |
| Timeline |
| Oblong Inc |
| Usio Inc |
Oblong and Usio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Usio
The main advantage of trading using opposite Oblong and Usio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Usio 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 Usio will offset losses from the drop in Usio'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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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