Correlation Between Full Truck and OLB
Can any of the company-specific risk be diversified away by investing in both Full Truck 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 Full Truck and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Full Truck Alliance and OLB Group, you can compare the effects of market volatilities on Full Truck 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 Full Truck with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Full Truck and OLB.
Diversification Opportunities for Full Truck and OLB
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Full and OLB is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Full Truck Alliance and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Full Truck 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 Full Truck Alliance 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 Full Truck i.e., Full Truck and OLB go up and down completely randomly.
Pair Corralation between Full Truck and OLB
Considering the 90-day investment horizon Full Truck Alliance is expected to generate 0.41 times more return on investment than OLB. However, Full Truck Alliance is 2.43 times less risky than OLB. It trades about 0.17 of its potential returns per unit of risk. OLB Group is currently generating about 0.0 per unit of risk. If you would invest 717.00 in Full Truck Alliance on August 31, 2024 and sell it today you would earn a total of 280.00 from holding Full Truck Alliance or generate 39.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Full Truck Alliance vs. OLB Group
Performance |
| Timeline |
| Full Truck Alliance |
| OLB Group |
Full Truck and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Full Truck and OLB
The main advantage of trading using opposite Full Truck and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full Truck 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.| Full Truck vs. Domo Inc | Full Truck vs. Oblong Inc | Full Truck vs. Kingsoft Cloud Holdings | Full Truck vs. Bm Technologies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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