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