Correlation Between J Sainsbury and Om Holdings
Can any of the company-specific risk be diversified away by investing in both J Sainsbury and Om Holdings 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 J Sainsbury and Om Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Sainsbury PLC and Om Holdings International, you can compare the effects of market volatilities on J Sainsbury and Om Holdings 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 J Sainsbury with a short position of Om Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Sainsbury and Om Holdings.
Diversification Opportunities for J Sainsbury and Om Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JSAIY and OMHI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding J Sainsbury PLC and Om Holdings International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Om Holdings International and J Sainsbury 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 J Sainsbury PLC are associated (or correlated) with Om Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Om Holdings International has no effect on the direction of J Sainsbury i.e., J Sainsbury and Om Holdings go up and down completely randomly.
Pair Corralation between J Sainsbury and Om Holdings
If you would invest 0.02 in Om Holdings International on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Om Holdings International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
J Sainsbury PLC vs. Om Holdings International
Performance |
| Timeline |
| J Sainsbury PLC |
| Om Holdings International |
J Sainsbury and Om Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Sainsbury and Om Holdings
The main advantage of trading using opposite J Sainsbury and Om Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Sainsbury position performs unexpectedly, Om Holdings 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 Om Holdings will offset losses from the drop in Om Holdings' long position.| J Sainsbury vs. Kesko Oyj ADR | J Sainsbury vs. Om Holdings International | J Sainsbury vs. Tesco PLC | J Sainsbury vs. Carrefour SA |
| Om Holdings vs. Tesco PLC | Om Holdings vs. Tesco PLC | Om Holdings vs. Ocado Group PLC | Om Holdings vs. Dairy Farm International |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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