Correlation Between WonderFi Technologies and Oblong
Can any of the company-specific risk be diversified away by investing in both WonderFi Technologies 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 WonderFi Technologies and Oblong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WonderFi Technologies and Oblong Inc, you can compare the effects of market volatilities on WonderFi Technologies 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 WonderFi Technologies with a short position of Oblong. Check out your portfolio center. Please also check ongoing floating volatility patterns of WonderFi Technologies and Oblong.
Diversification Opportunities for WonderFi Technologies and Oblong
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WonderFi and Oblong is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding WonderFi Technologies and Oblong Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oblong Inc and WonderFi Technologies 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 WonderFi Technologies 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 WonderFi Technologies i.e., WonderFi Technologies and Oblong go up and down completely randomly.
Pair Corralation between WonderFi Technologies and Oblong
Assuming the 90 days horizon WonderFi Technologies is expected to generate 1.11 times less return on investment than Oblong. But when comparing it to its historical volatility, WonderFi Technologies is 1.58 times less risky than Oblong. It trades about 0.03 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 620.00 in Oblong Inc on September 2, 2024 and sell it today you would lose (264.00) from holding Oblong Inc or give up 42.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
WonderFi Technologies vs. Oblong Inc
Performance |
| Timeline |
| WonderFi Technologies |
| Oblong Inc |
WonderFi Technologies and Oblong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WonderFi Technologies and Oblong
The main advantage of trading using opposite WonderFi Technologies and Oblong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WonderFi Technologies 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.| WonderFi Technologies vs. Waldencast Acquisition Corp | WonderFi Technologies vs. Alkami Technology | WonderFi Technologies vs. ADEIA P | WonderFi Technologies vs. Paycor HCM |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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