Correlation Between FLJ Old and Ohmyhome Limited

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

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

Diversification Opportunities for FLJ Old and Ohmyhome Limited

-0.14

Correlation Coefficient

FLJ Old  Ohmyhome Limited

Good diversification

The 3 months correlation between FLJ and Ohmyhome is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding FLJ Old 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 FLJ Old 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 FLJ Old 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 FLJ Old i.e., FLJ Old and Ohmyhome Limited go up and down completely randomly.

Pair Corralation between FLJ Old and Ohmyhome Limited

If you would invest  38.00  in Ohmyhome Limited Ordinary on October 26, 2024 and sell it today you would lose (2.00) from holding Ohmyhome Limited Ordinary or give up 5.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

FLJ Old  vs.  Ohmyhome Limited Ordinary

FLJ Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FLJ Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady essential indicators, FLJ Old is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Ohmyhome Limited Ordinary

Risk-Adjusted Performance

0 of 100

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 fairly strong primary indicators, Ohmyhome Limited is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with FLJ Old and Ohmyhome Limited

The main advantage of trading using opposite FLJ Old and Ohmyhome Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLJ Old 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 FLJ Old 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.