Correlation Between Oblong and Full Truck
Can any of the company-specific risk be diversified away by investing in both Oblong and Full Truck 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 Full Truck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oblong Inc and Full Truck Alliance, you can compare the effects of market volatilities on Oblong and Full Truck 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 Full Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oblong and Full Truck.
Diversification Opportunities for Oblong and Full Truck
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oblong and Full is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Full Truck Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Full Truck Alliance 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 Full Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Full Truck Alliance has no effect on the direction of Oblong i.e., Oblong and Full Truck go up and down completely randomly.
Pair Corralation between Oblong and Full Truck
Given the investment horizon of 90 days Oblong Inc is expected to generate 2.66 times more return on investment than Full Truck. However, Oblong is 2.66 times more volatile than Full Truck Alliance. It trades about 0.16 of its potential returns per unit of risk. Full Truck Alliance is currently generating about 0.12 per unit of risk. If you would invest 368.00 in Oblong Inc on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Oblong Inc or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oblong Inc vs. Full Truck Alliance
Performance |
| Timeline |
| Oblong Inc |
| Full Truck Alliance |
Oblong and Full Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oblong and Full Truck
The main advantage of trading using opposite Oblong and Full Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oblong position performs unexpectedly, Full Truck 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 Full Truck will offset losses from the drop in Full Truck's long position.| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. Bm Technologies | Oblong vs. ePlus inc |
| Full Truck vs. Domo Inc | Full Truck vs. Oblong Inc | Full Truck vs. Kingsoft Cloud Holdings | Full Truck vs. Bm Technologies |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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