Correlation Between OLB and Sangoma Technologies
Can any of the company-specific risk be diversified away by investing in both OLB and Sangoma Technologies 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 Sangoma Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OLB Group and Sangoma Technologies Corp, you can compare the effects of market volatilities on OLB and Sangoma Technologies 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 Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of OLB and Sangoma Technologies.
Diversification Opportunities for OLB and Sangoma Technologies
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OLB and Sangoma is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding OLB Group and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies Corp 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 Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of OLB i.e., OLB and Sangoma Technologies go up and down completely randomly.
Pair Corralation between OLB and Sangoma Technologies
Considering the 90-day investment horizon OLB Group is expected to under-perform the Sangoma Technologies. In addition to that, OLB is 2.91 times more volatile than Sangoma Technologies Corp. It trades about -0.19 of its total potential returns per unit of risk. Sangoma Technologies Corp is currently generating about 0.07 per unit of volatility. If you would invest 711.00 in Sangoma Technologies Corp on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Sangoma Technologies Corp or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OLB Group vs. Sangoma Technologies Corp
Performance |
| Timeline |
| OLB Group |
| Sangoma Technologies Corp |
OLB and Sangoma Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OLB and Sangoma Technologies
The main advantage of trading using opposite OLB and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OLB position performs unexpectedly, Sangoma Technologies 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.The idea behind OLB Group and Sangoma Technologies Corp 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.| Sangoma Technologies vs. Lesaka Technologies | Sangoma Technologies vs. Priority Technology Holdings | Sangoma Technologies vs. CSG Systems International | Sangoma Technologies vs. OneSpan |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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