Correlation Between ONT and Puffer

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

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

Diversification Opportunities for ONT and Puffer

0.0

Correlation Coefficient

ONT  Puffer

Pay attention - limited upside

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

Pair Corralation between ONT and Puffer

If you would invest (100.00) in ONT on May 7, 2025 and sell it today you would earn a total of  100.00  from holding ONT 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

ONT  vs.  Puffer

ONT

Risk-Adjusted Performance

Weakest

Over the last 90 days ONT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ONT is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Puffer

Risk-Adjusted Performance

Weakest

Over the last 90 days Puffer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Puffer is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ONT and Puffer

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

The idea behind ONT and Puffer 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.