Correlation Between Oblong and Wilhelmina
Can any of the company-specific risk be diversified away by investing in both Oblong and Wilhelmina 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 Wilhelmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Wilhelmina, you can compare the effects of market volatilities on Oblong and Wilhelmina 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 Wilhelmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Wilhelmina.
Diversification Opportunities for Oblong and Wilhelmina
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oblong and Wilhelmina is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Wilhelmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilhelmina 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 Wilhelmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilhelmina has no effect on the direction of Oblong i.e., Oblong and Wilhelmina go up and down completely randomly.
Pair Corralation between Oblong and Wilhelmina
Given the investment horizon of 90 days Oblong is expected to generate 1.11 times less return on investment than Wilhelmina. In addition to that, Oblong is 1.14 times more volatile than Wilhelmina. It trades about 0.04 of its total potential returns per unit of risk. Wilhelmina is currently generating about 0.05 per unit of volatility. If you would invest 332.00 in Wilhelmina on October 26, 2024 and sell it today you would earn a total of 19.00 from holding Wilhelmina or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.66% |
| Values | Daily Returns |
Oblong Inc vs. Wilhelmina
Performance |
| Timeline |
| Oblong Inc |
| Wilhelmina |
Oblong and Wilhelmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Wilhelmina
The main advantage of trading using opposite Oblong and Wilhelmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Wilhelmina 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 Wilhelmina will offset losses from the drop in Wilhelmina's long position.| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. Bm Technologies | Oblong vs. ePlus inc |
| Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited | Wilhelmina vs. SPAR Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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