Correlation Between Pegasystems and Obocon

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

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

Diversification Opportunities for Pegasystems and Obocon

0.0

Correlation Coefficient

Pegasystems  Obocon

Pay attention - limited upside

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

Pair Corralation between Pegasystems and Obocon

If you would invest  8,000  in Pegasystems on October 25, 2024 and sell it today you would earn a total of  2,828  from holding Pegasystems or generate 35.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Pegasystems  vs.  Obocon Inc

Pegasystems

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pegasystems are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Pegasystems sustained solid returns over the last few months and may actually be approaching a breakup point.

Obocon Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Pegasystems and Obocon

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

The idea behind Pegasystems and Obocon 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.