Correlation Between Ohmyhome Limited and Medican Enterprises

Can any of the company-specific risk be diversified away by investing in both Ohmyhome Limited and Medican Enterprises 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 Medican Enterprises 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 Medican Enterprises, you can compare the effects of market volatilities on Ohmyhome Limited and Medican Enterprises 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 Medican Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ohmyhome Limited and Medican Enterprises.

Diversification Opportunities for Ohmyhome Limited and Medican Enterprises

0.0

Correlation Coefficient

Ohmyhome Limited  Medican Enterprises

Pay attention - limited upside

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

Pair Corralation between Ohmyhome Limited and Medican Enterprises

If you would invest  40.00  in Ohmyhome Limited Ordinary on October 11, 2024 and sell it today you would earn a total of  1.00  from holding Ohmyhome Limited Ordinary or generate 2.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.12%
Values	Daily Returns

Ohmyhome Limited Ordinary  vs.  Medican Enterprises

Ohmyhome Limited Ordinary

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ohmyhome Limited Ordinary are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak primary indicators, Ohmyhome Limited may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Medican Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Medican Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Medican Enterprises is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Ohmyhome Limited and Medican Enterprises

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

The idea behind Ohmyhome Limited Ordinary and Medican Enterprises 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.

Check out your portfolio center.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.