Correlation Between Where Food and Otonomo Technologies

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

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

Diversification Opportunities for Where Food and Otonomo Technologies

0.0

Correlation Coefficient

Where Food  Otonomo Technologies

Pay attention - limited upside

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

Pair Corralation between Where Food and Otonomo Technologies

If you would invest  1,121  in Where Food Comes on May 7, 2025 and sell it today you would lose (1.00) from holding Where Food Comes or give up 0.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Where Food Comes  vs.  Otonomo Technologies

Where Food Comes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Where Food is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Otonomo Technologies

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Where Food and Otonomo Technologies

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

The idea behind Where Food Comes and Otonomo Technologies 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.