Correlation Between Trade Desk and OLB
Can any of the company-specific risk be diversified away by investing in both Trade Desk and OLB 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 Trade Desk and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trade Desk and OLB Group, you can compare the effects of market volatilities on Trade Desk and OLB 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 Trade Desk with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trade Desk and OLB.
Diversification Opportunities for Trade Desk and OLB
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trade and OLB is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Trade Desk and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Trade Desk 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 Trade Desk are associated (or correlated) with OLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLB Group has no effect on the direction of Trade Desk i.e., Trade Desk and OLB go up and down completely randomly.
Pair Corralation between Trade Desk and OLB
Considering the 90-day investment horizon Trade Desk is expected to generate 0.26 times more return on investment than OLB. However, Trade Desk is 3.85 times less risky than OLB. It trades about 0.17 of its potential returns per unit of risk. OLB Group is currently generating about -0.06 per unit of risk. If you would invest 10,965 in Trade Desk on August 30, 2024 and sell it today you would earn a total of 1,850 from holding Trade Desk or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trade Desk vs. OLB Group
Performance |
| Timeline |
| Trade Desk |
| OLB Group |
Trade Desk and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trade Desk and OLB
The main advantage of trading using opposite Trade Desk and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trade Desk position performs unexpectedly, OLB 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 OLB will offset losses from the drop in OLB's long position.| Trade Desk vs. Snowflake | Trade Desk vs. Zoom Video Communications | Trade Desk vs. C3 Ai Inc | Trade Desk vs. Salesforce |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |