Correlation Between 01 Communique and OLB

Can any of the company-specific risk be diversified away by investing in both 01 Communique and OLB 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 01 Communique and OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 01 Communique Laboratory and OLB Group, you can compare the effects of market volatilities on 01 Communique and OLB 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 01 Communique with a short position of OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of 01 Communique and OLB.

Diversification Opportunities for 01 Communique and OLB

0.16

Correlation Coefficient

01 Communique  OLB

Average diversification

The 3 months correlation between OONEF and OLB is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding 01 Communique Laboratory and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and 01 Communique 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 01 Communique Laboratory are associated (or correlated) with OLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLB Group has no effect on the direction of 01 Communique i.e., 01 Communique and OLB go up and down completely randomly.

Pair Corralation between 01 Communique and OLB

Assuming the 90 days horizon 01 Communique Laboratory is expected to generate 1.24 times more return on investment than OLB. However, 01 Communique is 1.24 times more volatile than OLB Group. It trades about 0.03 of its potential returns per unit of risk. OLB Group is currently generating about 0.02 per unit of risk. If you would invest  23.00  in 01 Communique Laboratory on February 17, 2025 and sell it today you would lose (1.00) from holding 01 Communique Laboratory or give up 4.35% of portfolio value over 90 days.

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

01 Communique Laboratory  vs.  OLB Group

01 Communique Laboratory

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 01 Communique Laboratory are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, 01 Communique reported solid returns over the last few months and may actually be approaching a breakup point.

OLB Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OLB Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, OLB may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with 01 Communique and OLB

The main advantage of trading using opposite 01 Communique and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 01 Communique position performs unexpectedly, OLB 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 OLB will offset losses from the drop in OLB's long position.

The idea behind 01 Communique Laboratory and OLB Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.