Correlation Between Decred and OMGC

Can any of the company-specific risk be diversified away by investing in both Decred and OMGC 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 Decred and OMGC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Decred and OMGC, you can compare the effects of market volatilities on Decred and OMGC 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 Decred with a short position of OMGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Decred and OMGC.

Diversification Opportunities for Decred and OMGC

0.0

Correlation Coefficient

Decred  OMGC

Pay attention - limited upside

The 3 months correlation between Decred and OMGC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Decred and OMGC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMGC and Decred 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 Decred are associated (or correlated) with OMGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMGC has no effect on the direction of Decred i.e., Decred and OMGC go up and down completely randomly.

Pair Corralation between Decred and OMGC

If you would invest (100.00) in OMGC on December 30, 2024 and sell it today you would earn a total of  100.00  from holding OMGC or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Decred  vs.  OMGC

Decred

Risk-Adjusted Performance

Very Weak

Over the last 90 days Decred has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Decred shareholders.

OMGC

Risk-Adjusted Performance

Very Weak

Over the last 90 days OMGC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, OMGC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Decred and OMGC

The main advantage of trading using opposite Decred and OMGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Decred position performs unexpectedly, OMGC 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 OMGC will offset losses from the drop in OMGC's long position.

The idea behind Decred and OMGC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.