Correlation Between EPlus and Oblong
Can any of the company-specific risk be diversified away by investing in both EPlus and Oblong 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 EPlus and Oblong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlus inc and Oblong Inc, you can compare the effects of market volatilities on EPlus and Oblong 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 EPlus with a short position of Oblong. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlus and Oblong.
Diversification Opportunities for EPlus and Oblong
Modest diversification
The 3 months correlation between EPlus and Oblong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and Oblong Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oblong Inc and EPlus 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 ePlus inc are associated (or correlated) with Oblong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oblong Inc has no effect on the direction of EPlus i.e., EPlus and Oblong go up and down completely randomly.
Pair Corralation between EPlus and Oblong
Given the investment horizon of 90 days EPlus is expected to generate 1.35 times less return on investment than Oblong. But when comparing it to its historical volatility, ePlus inc is 4.13 times less risky than Oblong. It trades about 0.05 of its potential returns per unit of risk. Oblong Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Oblong Inc on August 27, 2024 and sell it today you would lose (336.00) from holding Oblong Inc or give up 49.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ePlus inc vs. Oblong Inc
Performance |
| Timeline |
| ePlus inc |
| Oblong Inc |
EPlus and Oblong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlus and Oblong
The main advantage of trading using opposite EPlus and Oblong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlus position performs unexpectedly, Oblong 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 Oblong will offset losses from the drop in Oblong's long position.The idea behind ePlus inc and Oblong Inc 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.| Oblong vs. Full Truck Alliance | Oblong vs. Kingsoft Cloud Holdings | Oblong vs. Bm Technologies | Oblong vs. ePlus inc |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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