Correlation Between OMGC and EMERCOIN

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

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

Diversification Opportunities for OMGC and EMERCOIN

0.0

Correlation Coefficient

OMGC  EMERCOIN

Pay attention - limited upside

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

Pair Corralation between OMGC and EMERCOIN

If you would invest  0.65  in EMERCOIN on December 29, 2024 and sell it today you would lose (0.55) from holding EMERCOIN or give up 84.52% of portfolio value over 90 days.

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

OMGC  vs.  EMERCOIN

OMGC

Risk-Adjusted Performance

Very Weak

Over the last 90 days OMGC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, OMGC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

EMERCOIN

Risk-Adjusted Performance

Very Weak

Over the last 90 days EMERCOIN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly unsteady fundamental indicators, EMERCOIN demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OMGC and EMERCOIN

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

The idea behind OMGC and EMERCOIN 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 Global Correlations module to find global opportunities by holding instruments from different markets.