Correlation Between Onfolio Holdings and Zedge

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

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

Diversification Opportunities for Onfolio Holdings and Zedge

-0.51

Correlation Coefficient

Onfolio Holdings  Zedge

Excellent diversification

The 3 months correlation between Onfolio and Zedge is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Onfolio Holdings and Zedge Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedge Inc 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 Zedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedge Inc has no effect on the direction of Onfolio Holdings i.e., Onfolio Holdings and Zedge go up and down completely randomly.

Pair Corralation between Onfolio Holdings and Zedge

Given the investment horizon of 90 days Onfolio Holdings is expected to generate 2.07 times more return on investment than Zedge. However, Onfolio Holdings is 2.07 times more volatile than Zedge Inc. It trades about 0.14 of its potential returns per unit of risk. Zedge Inc is currently generating about -0.08 per unit of risk. If you would invest  97.00  in Onfolio Holdings on September 4, 2024 and sell it today you would earn a total of  59.00  from holding Onfolio Holdings or generate 60.82% 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.  Zedge Inc

Onfolio Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Onfolio Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Onfolio Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Zedge Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zedge Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Onfolio Holdings and Zedge

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

The idea behind Onfolio Holdings and Zedge 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.