Correlation Between Cairn Homes and Ormonde Mining

Can any of the company-specific risk be diversified away by investing in both Cairn Homes and Ormonde Mining 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 Cairn Homes and Ormonde Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cairn Homes PLC and Ormonde Mining PLC, you can compare the effects of market volatilities on Cairn Homes and Ormonde Mining 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 Cairn Homes with a short position of Ormonde Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairn Homes and Ormonde Mining.

Diversification Opportunities for Cairn Homes and Ormonde Mining

0.0

Correlation Coefficient

Cairn Homes  Ormonde Mining

Pay attention - limited upside

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

Pair Corralation between Cairn Homes and Ormonde Mining

If you would invest (100.00) in Ormonde Mining PLC on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Ormonde Mining PLC or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cairn Homes PLC  vs.  Ormonde Mining PLC

Cairn Homes PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cairn Homes PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Ormonde Mining PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ormonde Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ormonde Mining is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cairn Homes and Ormonde Mining

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

The idea behind Cairn Homes PLC and Ormonde Mining PLC 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.