Correlation Between ONETECH SOLUTIONS and Homeritz Bhd

Can any of the company-specific risk be diversified away by investing in both ONETECH SOLUTIONS and Homeritz Bhd 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 ONETECH SOLUTIONS and Homeritz Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ONETECH SOLUTIONS HOLDINGS and Homeritz Bhd, you can compare the effects of market volatilities on ONETECH SOLUTIONS and Homeritz Bhd 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 ONETECH SOLUTIONS with a short position of Homeritz Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONETECH SOLUTIONS and Homeritz Bhd.

Diversification Opportunities for ONETECH SOLUTIONS and Homeritz Bhd

0.0

Correlation Coefficient

ONETECH SOLUTIONS  Homeritz Bhd

Pay attention - limited upside

The 3 months correlation between ONETECH and Homeritz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ONETECH SOLUTIONS HOLDINGS and Homeritz Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Homeritz Bhd and ONETECH SOLUTIONS 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 ONETECH SOLUTIONS HOLDINGS are associated (or correlated) with Homeritz Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Homeritz Bhd has no effect on the direction of ONETECH SOLUTIONS i.e., ONETECH SOLUTIONS and Homeritz Bhd go up and down completely randomly.

Pair Corralation between ONETECH SOLUTIONS and Homeritz Bhd

If you would invest  52.00  in Homeritz Bhd on November 29, 2024 and sell it today you would earn a total of  5.00  from holding Homeritz Bhd or generate 9.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ONETECH SOLUTIONS HOLDINGS  vs.  Homeritz Bhd

ONETECH SOLUTIONS

Risk-Adjusted Performance

Very Weak

Over the last 90 days ONETECH SOLUTIONS HOLDINGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, ONETECH SOLUTIONS is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Homeritz Bhd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Homeritz Bhd are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Homeritz Bhd may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with ONETECH SOLUTIONS and Homeritz Bhd

The main advantage of trading using opposite ONETECH SOLUTIONS and Homeritz Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONETECH SOLUTIONS position performs unexpectedly, Homeritz Bhd 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 Homeritz Bhd will offset losses from the drop in Homeritz Bhd's long position.

The idea behind ONETECH SOLUTIONS HOLDINGS and Homeritz Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.