Correlation Between Oblong and Domo

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

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

Diversification Opportunities for Oblong and Domo

-0.15

Correlation Coefficient

Oblong  Domo

Good diversification

The 3 months correlation between Oblong and Domo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Domo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domo Inc 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 Domo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domo Inc has no effect on the direction of Oblong i.e., Oblong and Domo go up and down completely randomly.

Pair Corralation between Oblong and Domo

Given the investment horizon of 90 days Oblong Inc is expected to under-perform the Domo. In addition to that, Oblong is 1.24 times more volatile than Domo Inc. It trades about -0.13 of its total potential returns per unit of risk. Domo Inc is currently generating about -0.08 per unit of volatility. If you would invest  807.00  in Domo Inc on November 29, 2024 and sell it today you would lose (45.00) from holding Domo Inc or give up 5.58% of portfolio value over 90 days.

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

Oblong Inc  vs.  Domo Inc

Oblong Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oblong Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Oblong may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Domo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Domo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Oblong and Domo

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

The idea behind Oblong Inc and Domo 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.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.