Correlation Between Oneconnect Financial and Domo
Can any of the company-specific risk be diversified away by investing in both Oneconnect Financial and Domo 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 Oneconnect Financial and Domo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oneconnect Financial Technology and Domo Inc, you can compare the effects of market volatilities on Oneconnect Financial and Domo 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 Oneconnect Financial with a short position of Domo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneconnect Financial and Domo.
Diversification Opportunities for Oneconnect Financial and Domo
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oneconnect and Domo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oneconnect Financial Technolog and Domo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domo Inc and Oneconnect Financial 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 Oneconnect Financial Technology are associated (or correlated) with Domo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domo Inc has no effect on the direction of Oneconnect Financial i.e., Oneconnect Financial and Domo go up and down completely randomly.
Pair Corralation between Oneconnect Financial and Domo
Given the investment horizon of 90 days Oneconnect Financial Technology is expected to generate 3.49 times more return on investment than Domo. However, Oneconnect Financial is 3.49 times more volatile than Domo Inc. It trades about 0.14 of its potential returns per unit of risk. Domo Inc is currently generating about 0.06 per unit of risk. If you would invest 129.00 in Oneconnect Financial Technology on September 19, 2024 and sell it today you would earn a total of 116.00 from holding Oneconnect Financial Technology or generate 89.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Oneconnect Financial Technolog vs. Domo Inc
Performance |
Timeline |
Oneconnect Financial |
Domo Inc |
Oneconnect Financial and Domo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oneconnect Financial and Domo
The main advantage of trading using opposite Oneconnect Financial and Domo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneconnect Financial position performs unexpectedly, Domo 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 Domo will offset losses from the drop in Domo's long position.Oneconnect Financial vs. Swvl Holdings Corp | Oneconnect Financial vs. Guardforce AI Co | Oneconnect Financial vs. Thayer Ventures Acquisition |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |