Correlation Between Offerpad Solutions and Ohmyhome Limited

Can any of the company-specific risk be diversified away by investing in both Offerpad Solutions and Ohmyhome Limited 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 Offerpad Solutions and Ohmyhome Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Offerpad Solutions and Ohmyhome Limited Ordinary, you can compare the effects of market volatilities on Offerpad Solutions and Ohmyhome Limited 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 Offerpad Solutions with a short position of Ohmyhome Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offerpad Solutions and Ohmyhome Limited.

Diversification Opportunities for Offerpad Solutions and Ohmyhome Limited

0.27

Correlation Coefficient

Offerpad Solutions  Ohmyhome Limited

Modest diversification

The 3 months correlation between Offerpad and Ohmyhome is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Offerpad Solutions and Ohmyhome Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ohmyhome Limited Ordinary and Offerpad Solutions 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 Offerpad Solutions are associated (or correlated) with Ohmyhome Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ohmyhome Limited Ordinary has no effect on the direction of Offerpad Solutions i.e., Offerpad Solutions and Ohmyhome Limited go up and down completely randomly.

Pair Corralation between Offerpad Solutions and Ohmyhome Limited

Given the investment horizon of 90 days Offerpad Solutions is expected to under-perform the Ohmyhome Limited. But the stock apears to be less risky and, when comparing its historical volatility, Offerpad Solutions is 1.19 times less risky than Ohmyhome Limited. The stock trades about -0.14 of its potential returns per unit of risk. The Ohmyhome Limited Ordinary is currently generating about -0.09 of returns per unit of risk over similar time horizon. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Offerpad Solutions  vs.  Ohmyhome Limited Ordinary

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.

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.

Pair Trading with Offerpad Solutions and Ohmyhome Limited

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

The idea behind Offerpad Solutions and Ohmyhome Limited Ordinary 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.