Correlation Between OLB and Mobivity Holdings
Can any of the company-specific risk be diversified away by investing in both OLB and Mobivity Holdings 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 Mobivity Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OLB Group and Mobivity Holdings, you can compare the effects of market volatilities on OLB and Mobivity Holdings 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 Mobivity Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of OLB and Mobivity Holdings.
Diversification Opportunities for OLB and Mobivity Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between OLB and Mobivity is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding OLB Group and Mobivity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobivity Holdings 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 Mobivity Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobivity Holdings has no effect on the direction of OLB i.e., OLB and Mobivity Holdings go up and down completely randomly.
Pair Corralation between OLB and Mobivity Holdings
Considering the 90-day investment horizon OLB Group is expected to under-perform the Mobivity Holdings. In addition to that, OLB is 1.22 times more volatile than Mobivity Holdings. It trades about -0.06 of its total potential returns per unit of risk. Mobivity Holdings is currently generating about 0.12 per unit of volatility. If you would invest 23.00 in Mobivity Holdings on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Mobivity Holdings or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OLB Group vs. Mobivity Holdings
Performance |
| Timeline |
| OLB Group |
| Mobivity Holdings |
OLB and Mobivity Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OLB and Mobivity Holdings
The main advantage of trading using opposite OLB and Mobivity Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OLB position performs unexpectedly, Mobivity Holdings 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 Mobivity Holdings will offset losses from the drop in Mobivity Holdings' long position.The idea behind OLB Group and Mobivity Holdings 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.| Mobivity Holdings vs. HUMANA INC | Mobivity Holdings vs. SCOR PK | Mobivity Holdings vs. Aquagold International | Mobivity Holdings vs. Barloworld Ltd ADR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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