Correlation Between Onfolio Holdings and Shutterstock
Can any of the company-specific risk be diversified away by investing in both Onfolio Holdings and Shutterstock 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 Onfolio Holdings and Shutterstock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onfolio Holdings and Shutterstock, you can compare the effects of market volatilities on Onfolio Holdings and Shutterstock 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 Onfolio Holdings with a short position of Shutterstock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onfolio Holdings and Shutterstock.
Diversification Opportunities for Onfolio Holdings and Shutterstock
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onfolio and Shutterstock is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Onfolio Holdings and Shutterstock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shutterstock and Onfolio Holdings 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 Onfolio Holdings are associated (or correlated) with Shutterstock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shutterstock has no effect on the direction of Onfolio Holdings i.e., Onfolio Holdings and Shutterstock go up and down completely randomly.
Pair Corralation between Onfolio Holdings and Shutterstock
Given the investment horizon of 90 days Onfolio Holdings is expected to generate 2.52 times more return on investment than Shutterstock. However, Onfolio Holdings is 2.52 times more volatile than Shutterstock. It trades about 0.04 of its potential returns per unit of risk. Shutterstock is currently generating about -0.02 per unit of risk. If you would invest 121.00 in Onfolio Holdings on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Onfolio Holdings or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onfolio Holdings vs. Shutterstock
Performance |
| Timeline |
| Onfolio Holdings |
| Shutterstock |
Onfolio Holdings and Shutterstock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onfolio Holdings and Shutterstock
The main advantage of trading using opposite Onfolio Holdings and Shutterstock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onfolio Holdings position performs unexpectedly, Shutterstock 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 Shutterstock will offset losses from the drop in Shutterstock's long position.| Onfolio Holdings vs. Vivid Seats | Onfolio Holdings vs. EverQuote Class A | Onfolio Holdings vs. Asset Entities Class | Onfolio Holdings vs. Zhihu Inc ADR |
| Shutterstock vs. Yelp Inc | Shutterstock vs. Match Group | Shutterstock vs. Snap Inc | Shutterstock vs. Onfolio Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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