Correlation Between Wilhelmina and Oblong
Can any of the company-specific risk be diversified away by investing in both Wilhelmina 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 Wilhelmina and Oblong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilhelmina and Oblong Inc, you can compare the effects of market volatilities on Wilhelmina 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 Wilhelmina with a short position of Oblong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilhelmina and Oblong.
Diversification Opportunities for Wilhelmina and Oblong
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wilhelmina and Oblong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Wilhelmina and Oblong Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oblong Inc and Wilhelmina 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 Wilhelmina 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 Wilhelmina i.e., Wilhelmina and Oblong go up and down completely randomly.
Pair Corralation between Wilhelmina and Oblong
Given the investment horizon of 90 days Wilhelmina is expected to generate 0.87 times more return on investment than Oblong. However, Wilhelmina is 1.14 times less risky than Oblong. It trades about 0.05 of its potential returns per unit of risk. Oblong Inc is currently generating about 0.04 per unit of risk. If you would invest 332.00 in Wilhelmina on October 26, 2024 and sell it today you would earn a total of 19.00 from holding Wilhelmina or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.66% |
| Values | Daily Returns |
Wilhelmina vs. Oblong Inc
Performance |
| Timeline |
| Wilhelmina |
| Oblong Inc |
Wilhelmina and Oblong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilhelmina and Oblong
The main advantage of trading using opposite Wilhelmina and Oblong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilhelmina 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.| Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited | Wilhelmina vs. SPAR Group |
| 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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