Correlation Between Ohmyhome Limited and Ucommune International

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

Diversification Opportunities for Ohmyhome Limited and Ucommune International

0.4

Correlation Coefficient

Ohmyhome Limited  Ucommune International

Very weak diversification

The 3 months correlation between Ohmyhome and Ucommune is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ohmyhome Limited Ordinary and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International 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 Ucommune International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ucommune International has no effect on the direction of Ohmyhome Limited i.e., Ohmyhome Limited and Ucommune International go up and down completely randomly.

Pair Corralation between Ohmyhome Limited and Ucommune International

Considering the 90-day investment horizon Ohmyhome Limited Ordinary is expected to under-perform the Ucommune International. In addition to that, Ohmyhome Limited is 2.09 times more volatile than Ucommune International. It trades about -0.09 of its total potential returns per unit of risk. Ucommune International is currently generating about 0.01 per unit of volatility. If you would invest  117.00  in Ucommune International on December 19, 2024 and sell it today you would lose (2.00) from holding Ucommune International or give up 1.71% of portfolio value over 90 days.

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

Ohmyhome Limited Ordinary  vs.  Ucommune International

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.

Ucommune International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ucommune International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Ucommune International is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Ohmyhome Limited and Ucommune International

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

The idea behind Ohmyhome Limited Ordinary and Ucommune International 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.