Correlation Between Infobird and Oblong

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

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

Diversification Opportunities for Infobird and Oblong

0.0

Correlation Coefficient

Infobird  Oblong

Pay attention - limited upside

The 3 months correlation between Infobird and Oblong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Infobird Co and Oblong Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oblong Inc and Infobird 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 Infobird Co 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 Infobird i.e., Infobird and Oblong go up and down completely randomly.

Pair Corralation between Infobird and Oblong

Given the investment horizon of 90 days Infobird Co is expected to generate 0.52 times more return on investment than Oblong. However, Infobird Co is 1.91 times less risky than Oblong. It trades about 0.12 of its potential returns per unit of risk. Oblong Inc is currently generating about 0.05 per unit of risk. If you would invest  174.00  in Infobird Co on August 31, 2024 and sell it today you would earn a total of  90.00  from holding Infobird Co or generate 51.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Infobird Co  vs.  Oblong Inc

Infobird

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Infobird Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Infobird exhibited solid returns over the last few months and may actually be approaching a breakup point.

Oblong Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oblong Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating essential indicators, Oblong reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infobird and Oblong

The main advantage of trading using opposite Infobird and Oblong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infobird 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.

The idea behind Infobird Co and Oblong Inc 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.