Correlation Between Safe and Ohmyhome Limited

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

By analyzing existing cross correlation between Safe and Green and Ohmyhome Limited Ordinary, you can compare the effects of market volatilities on Safe and Ohmyhome Limited 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 Safe with a short position of Ohmyhome Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe and Ohmyhome Limited.

Diversification Opportunities for Safe and Ohmyhome Limited

0.63

Correlation Coefficient

Safe  Ohmyhome Limited

Poor diversification

The 3 months correlation between Safe and Ohmyhome is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Safe and Green and Ohmyhome Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ohmyhome Limited Ordinary and Safe 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 Safe and Green are associated (or correlated) with Ohmyhome Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ohmyhome Limited Ordinary has no effect on the direction of Safe i.e., Safe and Ohmyhome Limited go up and down completely randomly.

Pair Corralation between Safe and Ohmyhome Limited

Considering the 90-day investment horizon Safe and Green is expected to generate 0.74 times more return on investment than Ohmyhome Limited. However, Safe and Green is 1.35 times less risky than Ohmyhome Limited. It trades about 0.27 of its potential returns per unit of risk. Ohmyhome Limited Ordinary is currently generating about 0.03 per unit of risk. If you would invest  213.00  in Safe and Green on September 27, 2024 and sell it today you would earn a total of  66.00  from holding Safe and Green or generate 30.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Safe and Green  vs.  Ohmyhome Limited Ordinary

Safe and Green

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Safe and Green has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ohmyhome Limited Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ohmyhome Limited Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Ohmyhome Limited is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Safe and Ohmyhome Limited

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

The idea behind Safe and Green and Ohmyhome Limited Ordinary 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.