Correlation Between OnMobile Global and Netweb Technologies

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

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

Diversification Opportunities for OnMobile Global and Netweb Technologies

-0.24

Correlation Coefficient

OnMobile Global  Netweb Technologies

Very good diversification

The 3 months correlation between OnMobile and Netweb is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding OnMobile Global Limited and Netweb Technologies India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netweb Technologies India and OnMobile Global 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 OnMobile Global Limited are associated (or correlated) with Netweb Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netweb Technologies India has no effect on the direction of OnMobile Global i.e., OnMobile Global and Netweb Technologies go up and down completely randomly.

Pair Corralation between OnMobile Global and Netweb Technologies

Assuming the 90 days trading horizon OnMobile Global Limited is expected to under-perform the Netweb Technologies. In addition to that, OnMobile Global is 1.07 times more volatile than Netweb Technologies India. It trades about -0.14 of its total potential returns per unit of risk. Netweb Technologies India is currently generating about 0.05 per unit of volatility. If you would invest  261,510  in Netweb Technologies India on October 11, 2024 and sell it today you would earn a total of  15,500  from holding Netweb Technologies India or generate 5.93% return on investment over 90 days.

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

OnMobile Global Limited  vs.  Netweb Technologies India

OnMobile Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OnMobile Global Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Netweb Technologies India

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Netweb Technologies India are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Netweb Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with OnMobile Global and Netweb Technologies

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

The idea behind OnMobile Global Limited and Netweb Technologies India 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.