Correlation Between Oblong and EGain

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

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

Diversification Opportunities for Oblong and EGain

0.65

Correlation Coefficient

Oblong  EGain

Poor diversification

The 3 months correlation between Oblong and EGain is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain 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 EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of Oblong i.e., Oblong and EGain go up and down completely randomly.

Pair Corralation between Oblong and EGain

Given the investment horizon of 90 days Oblong Inc is expected to generate 1.15 times more return on investment than EGain. However, Oblong is 1.15 times more volatile than eGain. It trades about -0.05 of its potential returns per unit of risk. eGain is currently generating about -0.07 per unit of risk. If you would invest  412.00  in Oblong Inc on December 28, 2024 and sell it today you would lose (63.20) from holding Oblong Inc or give up 15.34% of portfolio value over 90 days.

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

Oblong Inc  vs.  eGain

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 latest weak performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

eGain

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Oblong and EGain

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

The idea behind Oblong Inc and eGain 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.