Correlation Between Oblong and Bm Technologies

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

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

Diversification Opportunities for Oblong and Bm Technologies

-0.61

Correlation Coefficient

Oblong  Bm Technologies

Excellent diversification

The 3 months correlation between Oblong and BMTX is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Bm Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bm Technologies and Oblong 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 Oblong Inc are associated (or correlated) with Bm Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bm Technologies has no effect on the direction of Oblong i.e., Oblong and Bm Technologies go up and down completely randomly.

Pair Corralation between Oblong and Bm Technologies

Given the investment horizon of 90 days Oblong Inc is expected to under-perform the Bm Technologies. In addition to that, Oblong is 12.52 times more volatile than Bm Technologies. It trades about -0.06 of its total potential returns per unit of risk. Bm Technologies is currently generating about 0.37 per unit of volatility. If you would invest  487.00  in Bm Technologies on December 28, 2024 and sell it today you would earn a total of  13.00  from holding Bm Technologies or generate 2.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	38.33%
Values	Daily Returns

Oblong Inc  vs.  Bm Technologies

Oblong Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oblong Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Bm Technologies

Risk-Adjusted Performance

Strong

Over the last 90 days Bm Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Bm Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Oblong and Bm Technologies

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

The idea behind Oblong Inc and Bm Technologies 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.