Correlation Between ON24 and Otonomo Technologies

Can any of the company-specific risk be diversified away by investing in both ON24 and Otonomo 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 ON24 and Otonomo Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ON24 Inc and Otonomo Technologies, you can compare the effects of market volatilities on ON24 and Otonomo 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 ON24 with a short position of Otonomo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ON24 and Otonomo Technologies.

Diversification Opportunities for ON24 and Otonomo Technologies

-0.54

Correlation Coefficient

ON24  Otonomo Technologies

Excellent diversification

The 3 months correlation between ON24 and Otonomo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ON24 Inc and Otonomo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otonomo Technologies and ON24 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 ON24 Inc are associated (or correlated) with Otonomo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otonomo Technologies has no effect on the direction of ON24 i.e., ON24 and Otonomo Technologies go up and down completely randomly.

Pair Corralation between ON24 and Otonomo Technologies

Given the investment horizon of 90 days ON24 Inc is expected to generate 0.53 times more return on investment than Otonomo Technologies. However, ON24 Inc is 1.87 times less risky than Otonomo Technologies. It trades about 0.0 of its potential returns per unit of risk. Otonomo Technologies is currently generating about -0.01 per unit of risk. If you would invest  752.00  in ON24 Inc on October 10, 2024 and sell it today you would lose (94.00) from holding ON24 Inc or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	26.01%
Values	Daily Returns

ON24 Inc  vs.  Otonomo Technologies

ON24 Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ON24 Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, ON24 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Otonomo Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Otonomo Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Otonomo Technologies is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ON24 and Otonomo Technologies

The main advantage of trading using opposite ON24 and Otonomo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ON24 position performs unexpectedly, Otonomo 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 Otonomo Technologies will offset losses from the drop in Otonomo Technologies' long position.

The idea behind ON24 Inc and Otonomo Technologies 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.