Correlation Between Ohmyhome Limited and Maui Land

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

Diversification Opportunities for Ohmyhome Limited and Maui Land

0.76

Correlation Coefficient

Ohmyhome Limited  Maui Land

Poor diversification

The 3 months correlation between Ohmyhome and Maui is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ohmyhome Limited Ordinary and Maui Land Pineapple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maui Land Pineapple 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 Maui Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maui Land Pineapple has no effect on the direction of Ohmyhome Limited i.e., Ohmyhome Limited and Maui Land go up and down completely randomly.

Pair Corralation between Ohmyhome Limited and Maui Land

Considering the 90-day investment horizon Ohmyhome Limited Ordinary is expected to under-perform the Maui Land. In addition to that, Ohmyhome Limited is 3.07 times more volatile than Maui Land Pineapple. It trades about -0.1 of its total potential returns per unit of risk. Maui Land Pineapple is currently generating about -0.09 per unit of volatility. If you would invest  2,108  in Maui Land Pineapple on December 28, 2024 and sell it today you would lose (260.00) from holding Maui Land Pineapple or give up 12.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Ohmyhome Limited Ordinary  vs.  Maui Land Pineapple

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 fragile 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.

Maui Land Pineapple

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maui Land Pineapple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Ohmyhome Limited and Maui Land

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

The idea behind Ohmyhome Limited Ordinary and Maui Land Pineapple 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.