Correlation Between Seven I and Om Holdings
Can any of the company-specific risk be diversified away by investing in both Seven I and Om Holdings 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 Seven I and Om Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seven i Holdings and Om Holdings International, you can compare the effects of market volatilities on Seven I and Om Holdings 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 Seven I with a short position of Om Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seven I and Om Holdings.
Diversification Opportunities for Seven I and Om Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seven and OMHI is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Seven i Holdings and Om Holdings International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Om Holdings International and Seven I 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 Seven i Holdings are associated (or correlated) with Om Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Om Holdings International has no effect on the direction of Seven I i.e., Seven I and Om Holdings go up and down completely randomly.
Pair Corralation between Seven I and Om Holdings
Assuming the 90 days horizon Seven i Holdings is expected to generate 0.44 times more return on investment than Om Holdings. However, Seven i Holdings is 2.27 times less risky than Om Holdings. It trades about 0.03 of its potential returns per unit of risk. Om Holdings International is currently generating about 0.0 per unit of risk. If you would invest 1,342 in Seven i Holdings on September 3, 2024 and sell it today you would earn a total of 387.00 from holding Seven i Holdings or generate 28.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Seven i Holdings vs. Om Holdings International
Performance |
| Timeline |
| Seven i Holdings |
| Om Holdings International |
Seven I and Om Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seven I and Om Holdings
The main advantage of trading using opposite Seven I and Om Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seven I position performs unexpectedly, Om Holdings 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 Om Holdings will offset losses from the drop in Om Holdings' long position.| Seven I vs. Koninklijke Ahold Delhaize | Seven I vs. Weis Markets | Seven I vs. Albertsons Companies | Seven I vs. Dingdong ADR |
| Om Holdings vs. Carrefour SA | Om Holdings vs. J Sainsbury plc | Om Holdings vs. Carrefour SA PK | Om Holdings 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |