Correlation Between Om Holdings and J Sainsbury
Can any of the company-specific risk be diversified away by investing in both Om Holdings and J Sainsbury 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 J Sainsbury 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 J Sainsbury plc, you can compare the effects of market volatilities on Om Holdings and J Sainsbury 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 J Sainsbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Om Holdings and J Sainsbury.
Diversification Opportunities for Om Holdings and J Sainsbury
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMHI and JSNSF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Om Holdings International and J Sainsbury plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Sainsbury plc 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 J Sainsbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Sainsbury plc has no effect on the direction of Om Holdings i.e., Om Holdings and J Sainsbury go up and down completely randomly.
Pair Corralation between Om Holdings and J Sainsbury
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 |
Om Holdings International vs. J Sainsbury plc
Performance |
| Timeline |
| Om Holdings International |
| J Sainsbury plc |
Om Holdings and J Sainsbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Om Holdings and J Sainsbury
The main advantage of trading using opposite Om Holdings and J Sainsbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Om Holdings position performs unexpectedly, J Sainsbury 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 J Sainsbury will offset losses from the drop in J Sainsbury's long position.| Om Holdings vs. Tesco PLC | Om Holdings vs. Tesco PLC | Om Holdings vs. Ocado Group PLC | Om Holdings vs. Dairy Farm International |
| J Sainsbury vs. Kesko Oyj ADR | J Sainsbury vs. Om Holdings International | J Sainsbury vs. Carrefour SA PK | J Sainsbury vs. Carrefour SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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