Correlation Between Onfolio Holdings and EverQuote

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

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

Diversification Opportunities for Onfolio Holdings and EverQuote

-0.56

Correlation Coefficient

Onfolio Holdings  EverQuote

Excellent diversification

The 3 months correlation between Onfolio and EverQuote is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Onfolio Holdings and EverQuote Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverQuote Class A and Onfolio Holdings 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 Onfolio Holdings are associated (or correlated) with EverQuote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverQuote Class A has no effect on the direction of Onfolio Holdings i.e., Onfolio Holdings and EverQuote go up and down completely randomly.

Pair Corralation between Onfolio Holdings and EverQuote

Given the investment horizon of 90 days Onfolio Holdings is expected to under-perform the EverQuote. But the stock apears to be less risky and, when comparing its historical volatility, Onfolio Holdings is 1.17 times less risky than EverQuote. The stock trades about -0.09 of its potential returns per unit of risk. The EverQuote Class A is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,969  in EverQuote Class A on December 30, 2024 and sell it today you would earn a total of  719.00  from holding EverQuote Class A or generate 36.52% return on investment over 90 days.

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

Onfolio Holdings  vs.  EverQuote Class A

Onfolio Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Onfolio Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental 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.

EverQuote Class A

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EverQuote Class A are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, EverQuote reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Onfolio Holdings and EverQuote

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

The idea behind Onfolio Holdings and EverQuote Class A 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.