Correlation Between Onfolio Holdings and Perion Network

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

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

Diversification Opportunities for Onfolio Holdings and Perion Network

-0.29

Correlation Coefficient

Onfolio Holdings  Perion Network

Very good diversification

The 3 months correlation between Onfolio and Perion is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Onfolio Holdings Warrant and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network and Onfolio Holdings 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 Onfolio Holdings Warrant are associated (or correlated) with Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of Onfolio Holdings i.e., Onfolio Holdings and Perion Network go up and down completely randomly.

Pair Corralation between Onfolio Holdings and Perion Network

Assuming the 90 days horizon Onfolio Holdings Warrant is expected to generate 4.29 times more return on investment than Perion Network. However, Onfolio Holdings is 4.29 times more volatile than Perion Network. It trades about 0.03 of its potential returns per unit of risk. Perion Network is currently generating about 0.11 per unit of risk. If you would invest  17.00  in Onfolio Holdings Warrant on May 6, 2025 and sell it today you would lose (2.00) from holding Onfolio Holdings Warrant or give up 11.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	61.29%
Values	Daily Returns

Onfolio Holdings Warrant  vs.  Perion Network

Onfolio Holdings Warrant

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Onfolio Holdings Warrant are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Onfolio Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Perion Network

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Perion Network are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Perion Network demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Onfolio Holdings and Perion Network

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

The idea behind Onfolio Holdings Warrant and Perion Network 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.

Check out your portfolio center.

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 Transaction History module to view history of all your transactions and understand their impact on performance.