Correlation Between Om Holdings and Seven I
Can any of the company-specific risk be diversified away by investing in both Om Holdings and Seven I 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 Seven I 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 Seven i Holdings, you can compare the effects of market volatilities on Om Holdings and Seven I 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 Seven I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Om Holdings and Seven I.
Diversification Opportunities for Om Holdings and Seven I
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMHI and Seven is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Om Holdings International and Seven i Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven i Holdings 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 Seven I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven i Holdings has no effect on the direction of Om Holdings i.e., Om Holdings and Seven I go up and down completely randomly.
Pair Corralation between Om Holdings and Seven I
Given the investment horizon of 90 days Om Holdings International is expected to under-perform the Seven I. In addition to that, Om Holdings is 2.12 times more volatile than Seven i Holdings. It trades about -0.08 of its total potential returns per unit of risk. Seven i Holdings is currently generating about 0.06 per unit of volatility. If you would invest 1,304 in Seven i Holdings on September 3, 2024 and sell it today you would earn a total of 304.00 from holding Seven i Holdings or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Om Holdings International vs. Seven i Holdings
Performance |
| Timeline |
| Om Holdings International |
| Seven i Holdings |
Om Holdings and Seven I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Om Holdings and Seven I
The main advantage of trading using opposite Om Holdings and Seven I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Om Holdings position performs unexpectedly, Seven I 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 Seven I will offset losses from the drop in Seven I's long position.| Om Holdings vs. Carrefour SA | Om Holdings vs. J Sainsbury plc | Om Holdings vs. Carrefour SA PK | Om Holdings vs. Kesko Oyj ADR |
| Seven I vs. Kesko Oyj ADR | Seven I vs. Om Holdings International | Seven I vs. Tesco PLC | Seven I 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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