Correlation Between Ohmyhome Limited and CareTrust REIT

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

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

Diversification Opportunities for Ohmyhome Limited and CareTrust REIT

-0.05

Correlation Coefficient

Ohmyhome Limited  CareTrust REIT

Good diversification

The 3 months correlation between Ohmyhome and CareTrust is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ohmyhome Limited Ordinary and CareTrust REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareTrust REIT and Ohmyhome Limited 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 Ohmyhome Limited Ordinary are associated (or correlated) with CareTrust REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareTrust REIT has no effect on the direction of Ohmyhome Limited i.e., Ohmyhome Limited and CareTrust REIT go up and down completely randomly.

Pair Corralation between Ohmyhome Limited and CareTrust REIT

Considering the 90-day investment horizon Ohmyhome Limited Ordinary is expected to generate 39.2 times more return on investment than CareTrust REIT. However, Ohmyhome Limited is 39.2 times more volatile than CareTrust REIT. It trades about 0.05 of its potential returns per unit of risk. CareTrust REIT is currently generating about 0.08 per unit of risk. If you would invest  0.00  in Ohmyhome Limited Ordinary on September 26, 2024 and sell it today you would earn a total of  39.00  from holding Ohmyhome Limited Ordinary or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.92%
Values	Daily Returns

Ohmyhome Limited Ordinary  vs.  CareTrust REIT

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 latest stock price confusion, may contribute to short-horizon losses for the traders.

CareTrust REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CareTrust REIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Ohmyhome Limited and CareTrust REIT

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

The idea behind Ohmyhome Limited Ordinary and CareTrust REIT 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..