Correlation Between Ohmyhome Limited and Redfin Corp

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

Diversification Opportunities for Ohmyhome Limited and Redfin Corp

0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Ohmyhome and Redfin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ohmyhome Limited Ordinary and Redfin Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redfin Corp and Ohmyhome Limited 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 Ohmyhome Limited Ordinary are associated (or correlated) with Redfin Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redfin Corp has no effect on the direction of Ohmyhome Limited i.e., Ohmyhome Limited and Redfin Corp go up and down completely randomly.

Pair Corralation between Ohmyhome Limited and Redfin Corp

Considering the 90-day investment horizon Ohmyhome Limited Ordinary is expected to under-perform the Redfin Corp. In addition to that, Ohmyhome Limited is 1.7 times more volatile than Redfin Corp. It trades about -0.07 of its total potential returns per unit of risk. Redfin Corp is currently generating about 0.23 per unit of volatility. If you would invest  742.00  in Redfin Corp on November 9, 2024 and sell it today you would earn a total of  105.00  from holding Redfin Corp or generate 14.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ohmyhome Limited Ordinary  vs.  Redfin Corp

 Performance 
       Timeline  
Ohmyhome Limited Ordinary 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
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.
Redfin Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Redfin Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Ohmyhome Limited and Redfin Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ohmyhome Limited and Redfin Corp

The main advantage of trading using opposite Ohmyhome Limited and Redfin Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ohmyhome Limited position performs unexpectedly, Redfin Corp 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 Redfin Corp will offset losses from the drop in Redfin Corp's long position.
The idea behind Ohmyhome Limited Ordinary and Redfin Corp 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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