Correlation Between Ohmyhome Limited and Modiv

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

Diversification Opportunities for Ohmyhome Limited and Modiv

-0.62

Correlation Coefficient

Ohmyhome Limited  Modiv

Excellent diversification

The 3 months correlation between Ohmyhome and Modiv is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ohmyhome Limited Ordinary and Modiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modiv Inc 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 Modiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modiv Inc has no effect on the direction of Ohmyhome Limited i.e., Ohmyhome Limited and Modiv go up and down completely randomly.

Pair Corralation between Ohmyhome Limited and Modiv

Considering the 90-day investment horizon Ohmyhome Limited Ordinary is expected to under-perform the Modiv. In addition to that, Ohmyhome Limited is 3.3 times more volatile than Modiv Inc. It trades about -0.1 of its total potential returns per unit of risk. Modiv Inc is currently generating about 0.07 per unit of volatility. If you would invest  1,465  in Modiv Inc on December 29, 2024 and sell it today you would earn a total of  111.00  from holding Modiv Inc or generate 7.58% return on investment over 90 days.

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

Ohmyhome Limited Ordinary  vs.  Modiv Inc

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 weak 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.

Modiv Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Modiv Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Modiv may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Ohmyhome Limited and Modiv

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

The idea behind Ohmyhome Limited Ordinary and Modiv Inc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.