Correlation Between OMG Network and GreenSky

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both OMG Network and GreenSky 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 OMG Network and GreenSky into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OMG Network and GreenSky, you can compare the effects of market volatilities on OMG Network and GreenSky 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 OMG Network with a short position of GreenSky. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMG Network and GreenSky.

Diversification Opportunities for OMG Network and GreenSky

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between OMG Network and GreenSky is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding OMG Network and GreenSky Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenSky and OMG Network 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 OMG Network are associated (or correlated) with GreenSky. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenSky has no effect on the direction of OMG Network i.e., OMG Network and GreenSky go up and down completely randomly.

Pair Corralation between OMG Network and GreenSky

If you would invest  1,020  in GreenSky on February 20, 2022 and sell it today you would earn a total of  0.00  from holding GreenSky or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

OMG Network  vs.  GreenSky Inc

 Performance (%) 
      Timeline 
OMG Network 
OMG Network Performance
0 of 100
Over the last 90 days OMG Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's primary indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for OMG Network investors.

OMG Network Price Channel

GreenSky 
GreenSky Performance
0 of 100
Over the last 90 days GreenSky has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, GreenSky is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

OMG Network and GreenSky Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with OMG Network and GreenSky

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

GreenSky

Pair trading matchups for GreenSky

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

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
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go