Correlation Between Clear Secure and OLB
Can any of the company-specific risk be diversified away by investing in both Clear Secure 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 Clear Secure and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Secure and OLB Group, you can compare the effects of market volatilities on Clear Secure 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 Clear Secure with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Secure and OLB.
Diversification Opportunities for Clear Secure and OLB
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clear and OLB is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Clear Secure 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 Clear Secure 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 Clear Secure i.e., Clear Secure and OLB go up and down completely randomly.
Pair Corralation between Clear Secure and OLB
Considering the 90-day investment horizon Clear Secure is expected to under-perform the OLB. But the stock apears to be less risky and, when comparing its historical volatility, Clear Secure is 1.77 times less risky than OLB. The stock trades about -0.23 of its potential returns per unit of risk. The OLB Group is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 222.00 in OLB Group on August 31, 2024 and sell it today you would lose (45.00) from holding OLB Group or give up 20.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clear Secure vs. OLB Group
Performance |
| Timeline |
| Clear Secure |
| OLB Group |
Clear Secure and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Secure and OLB
The main advantage of trading using opposite Clear Secure and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Secure 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.| Clear Secure vs. Braze Inc | Clear Secure vs. Enfusion | Clear Secure vs. Freshworks | Clear Secure vs. Clearwater Analytics Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |