Correlation Between Ohmyhome Limited and Offerpad Solutions

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

Diversification Opportunities for Ohmyhome Limited and Offerpad Solutions

0.71

Correlation Coefficient

Ohmyhome Limited  Offerpad Solutions

Poor diversification

The 3 months correlation between Ohmyhome and Offerpad is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ohmyhome Limited Ordinary and Offerpad Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offerpad Solutions 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 Offerpad Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offerpad Solutions has no effect on the direction of Ohmyhome Limited i.e., Ohmyhome Limited and Offerpad Solutions go up and down completely randomly.

Pair Corralation between Ohmyhome Limited and Offerpad Solutions

Considering the 90-day investment horizon Ohmyhome Limited Ordinary is expected to generate 1.19 times more return on investment than Offerpad Solutions. However, Ohmyhome Limited is 1.19 times more volatile than Offerpad Solutions. It trades about -0.09 of its potential returns per unit of risk. Offerpad Solutions is currently generating about -0.14 per unit of risk. If you would invest  395.00  in Ohmyhome Limited Ordinary on December 29, 2024 and sell it today you would lose (161.00) from holding Ohmyhome Limited Ordinary or give up 40.76% of portfolio value over 90 days.

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

Ohmyhome Limited Ordinary  vs.  Offerpad Solutions

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.

Offerpad Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Offerpad Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Ohmyhome Limited and Offerpad Solutions

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

The idea behind Ohmyhome Limited Ordinary and Offerpad Solutions 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.