Correlation Between Om Holdings and Koninklijke Ahold
Can any of the company-specific risk be diversified away by investing in both Om Holdings and Koninklijke Ahold 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 Om Holdings and Koninklijke Ahold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Om Holdings International and Koninklijke Ahold Delhaize, you can compare the effects of market volatilities on Om Holdings and Koninklijke Ahold 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 Om Holdings with a short position of Koninklijke Ahold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Om Holdings and Koninklijke Ahold.
Diversification Opportunities for Om Holdings and Koninklijke Ahold
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMHI and Koninklijke is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Om Holdings International and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold and Om Holdings 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 Om Holdings International are associated (or correlated) with Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of Om Holdings i.e., Om Holdings and Koninklijke Ahold go up and down completely randomly.
Pair Corralation between Om Holdings and Koninklijke Ahold
If you would invest 3,260 in Koninklijke Ahold Delhaize on September 5, 2024 and sell it today you would earn a total of 75.00 from holding Koninklijke Ahold Delhaize or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Om Holdings International vs. Koninklijke Ahold Delhaize
Performance |
| Timeline |
| Om Holdings International |
| Koninklijke Ahold |
Om Holdings and Koninklijke Ahold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Om Holdings and Koninklijke Ahold
The main advantage of trading using opposite Om Holdings and Koninklijke Ahold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Om Holdings position performs unexpectedly, Koninklijke Ahold 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 Koninklijke Ahold will offset losses from the drop in Koninklijke Ahold's long position.| Om Holdings vs. Kesko Oyj ADR | Om Holdings vs. Tesco PLC | Om Holdings vs. Carrefour SA | Om Holdings vs. J Sainsbury plc |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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