Correlation Between SimilarWeb and Olo

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

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

Diversification Opportunities for SimilarWeb and Olo

0.79

Correlation Coefficient

SimilarWeb  Olo

Poor diversification

The 3 months correlation between SimilarWeb and Olo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SimilarWeb and Olo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olo Inc and SimilarWeb 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 SimilarWeb are associated (or correlated) with Olo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olo Inc has no effect on the direction of SimilarWeb i.e., SimilarWeb and Olo go up and down completely randomly.

Pair Corralation between SimilarWeb and Olo

Given the investment horizon of 90 days SimilarWeb is expected to under-perform the Olo. In addition to that, SimilarWeb is 1.98 times more volatile than Olo Inc. It trades about -0.15 of its total potential returns per unit of risk. Olo Inc is currently generating about -0.11 per unit of volatility. If you would invest  770.00  in Olo Inc on December 29, 2024 and sell it today you would lose (128.00) from holding Olo Inc or give up 16.62% of portfolio value over 90 days.

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

SimilarWeb  vs.  Olo Inc

SimilarWeb

Risk-Adjusted Performance

Very Weak

Over the last 90 days SimilarWeb has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Olo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Olo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's essential indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with SimilarWeb and Olo

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

The idea behind SimilarWeb and Olo 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.