Correlation Between Ocado Group and Om Holdings
Can any of the company-specific risk be diversified away by investing in both Ocado Group 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 Ocado Group and Om Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocado Group plc and Om Holdings International, you can compare the effects of market volatilities on Ocado Group 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 Ocado Group with a short position of Om Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocado Group and Om Holdings.
Diversification Opportunities for Ocado Group and Om Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ocado and OMHI is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ocado Group 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 Ocado Group 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 Ocado Group 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 Ocado Group i.e., Ocado Group and Om Holdings go up and down completely randomly.
Pair Corralation between Ocado Group and Om Holdings
Assuming the 90 days horizon Ocado Group plc is expected to generate 0.55 times more return on investment than Om Holdings. However, Ocado Group plc is 1.83 times less risky than Om Holdings. It trades about -0.02 of its potential returns per unit of risk. Om Holdings International is currently generating about -0.04 per unit of risk. If you would invest 1,462 in Ocado Group plc on August 28, 2024 and sell it today you would lose (709.00) from holding Ocado Group plc or give up 48.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocado Group plc vs. Om Holdings International
Performance |
| Timeline |
| Ocado Group plc |
| Om Holdings International |
Ocado Group and Om Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocado Group and Om Holdings
The main advantage of trading using opposite Ocado Group and Om Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocado Group 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.| Ocado Group vs. Natural Grocers by | Ocado Group vs. Grocery Outlet Holding | Ocado Group vs. Village Super Market | Ocado Group vs. Ingles Markets Incorporated |
| Om Holdings vs. Carrefour SA | Om Holdings vs. J Sainsbury plc | Om Holdings vs. Carrefour SA PK | Om Holdings vs. Kesko Oyj ADR |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |