Correlation Between Oblong and Mediaco Holding

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

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

Diversification Opportunities for Oblong and Mediaco Holding

0.02

Correlation Coefficient

Oblong  Mediaco Holding

Significant diversification

The 3 months correlation between Oblong and Mediaco is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oblong Inc and Mediaco Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaco Holding and Oblong 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 Oblong Inc are associated (or correlated) with Mediaco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediaco Holding has no effect on the direction of Oblong i.e., Oblong and Mediaco Holding go up and down completely randomly.

Pair Corralation between Oblong and Mediaco Holding

Given the investment horizon of 90 days Oblong Inc is expected to generate 1.33 times more return on investment than Mediaco Holding. However, Oblong is 1.33 times more volatile than Mediaco Holding. It trades about 0.05 of its potential returns per unit of risk. Mediaco Holding is currently generating about -0.1 per unit of risk. If you would invest  356.00  in Oblong Inc on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Oblong Inc or generate 0.0% return on investment over 90 days.

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

Oblong Inc  vs.  Mediaco Holding

Oblong Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oblong Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Oblong reported solid returns over the last few months and may actually be approaching a breakup point.

Mediaco Holding

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Oblong and Mediaco Holding

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

The idea behind Oblong Inc and Mediaco Holding 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.