Correlation Between OLB and Trust Stamp
Can any of the company-specific risk be diversified away by investing in both OLB and Trust Stamp 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 OLB and Trust Stamp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OLB Group and Trust Stamp, you can compare the effects of market volatilities on OLB and Trust Stamp 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 OLB with a short position of Trust Stamp. Check out your portfolio center. Please also check ongoing floating volatility patterns of OLB and Trust Stamp.
Diversification Opportunities for OLB and Trust Stamp
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between OLB and Trust is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding OLB Group and Trust Stamp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Stamp and OLB 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 OLB Group are associated (or correlated) with Trust Stamp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Stamp has no effect on the direction of OLB i.e., OLB and Trust Stamp go up and down completely randomly.
Pair Corralation between OLB and Trust Stamp
Considering the 90-day investment horizon OLB Group is expected to under-perform the Trust Stamp. But the stock apears to be less risky and, when comparing its historical volatility, OLB Group is 1.15 times less risky than Trust Stamp. The stock trades about -0.06 of its potential returns per unit of risk. The Trust Stamp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 156.00 in Trust Stamp on August 29, 2024 and sell it today you would lose (119.00) from holding Trust Stamp or give up 76.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OLB Group vs. Trust Stamp
Performance |
| Timeline |
| OLB Group |
| Trust Stamp |
OLB and Trust Stamp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OLB and Trust Stamp
The main advantage of trading using opposite OLB and Trust Stamp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OLB position performs unexpectedly, Trust Stamp 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 Trust Stamp will offset losses from the drop in Trust Stamp's long position.The idea behind OLB Group and Trust Stamp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Trust Stamp vs. HeartCore Enterprises | Trust Stamp vs. Quhuo | Trust Stamp vs. Infobird Co | Trust Stamp vs. Beamr Imaging Ltd |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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