Correlation Between Ontrak and B Riley

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

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

Diversification Opportunities for Ontrak and B Riley

0.0

Correlation Coefficient

Ontrak  B Riley

Pay attention - limited upside

The 3 months correlation between Ontrak and RILYP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ontrak Inc and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial and Ontrak 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 Ontrak Inc are associated (or correlated) with B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Ontrak i.e., Ontrak and B Riley go up and down completely randomly.

Pair Corralation between Ontrak and B Riley

If you would invest (100.00) in Ontrak Inc on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Ontrak Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ontrak Inc  vs.  B Riley Financial

Ontrak Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ontrak Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Ontrak is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

B Riley Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days B Riley Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Ontrak and B Riley

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

The idea behind Ontrak Inc and B Riley Financial 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.