Correlation Between EXp World and Ohmyhome Limited

Can any of the company-specific risk be diversified away by investing in both EXp World and Ohmyhome Limited 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 EXp World and Ohmyhome Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between eXp World Holdings and Ohmyhome Limited Ordinary, you can compare the effects of market volatilities on EXp World and Ohmyhome Limited 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 EXp World with a short position of Ohmyhome Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXp World and Ohmyhome Limited.

Diversification Opportunities for EXp World and Ohmyhome Limited

0.79

Correlation Coefficient

EXp World  Ohmyhome Limited

Poor diversification

The 3 months correlation between EXp and Ohmyhome is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Ohmyhome Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ohmyhome Limited Ordinary and EXp World 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 eXp World Holdings are associated (or correlated) with Ohmyhome Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ohmyhome Limited Ordinary has no effect on the direction of EXp World i.e., EXp World and Ohmyhome Limited go up and down completely randomly.

Pair Corralation between EXp World and Ohmyhome Limited

Given the investment horizon of 90 days eXp World Holdings is expected to generate 0.37 times more return on investment than Ohmyhome Limited. However, eXp World Holdings is 2.73 times less risky than Ohmyhome Limited. It trades about -0.07 of its potential returns per unit of risk. Ohmyhome Limited Ordinary is currently generating about -0.1 per unit of risk. If you would invest  1,162  in eXp World Holdings on December 28, 2024 and sell it today you would lose (135.00) from holding eXp World Holdings or give up 11.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

eXp World Holdings  vs.  Ohmyhome Limited Ordinary

eXp World Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days eXp World Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Ohmyhome Limited Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ohmyhome Limited Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with EXp World and Ohmyhome Limited

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

The idea behind eXp World Holdings and Ohmyhome Limited Ordinary 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.