Correlation Between Redfin Corp and Ohmyhome Limited

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

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

Diversification Opportunities for Redfin Corp and Ohmyhome Limited

-0.58

Correlation Coefficient

Redfin Corp  Ohmyhome Limited

Excellent diversification

The 3 months correlation between Redfin and Ohmyhome is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Redfin Corp 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 Redfin Corp 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 Redfin Corp 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 Redfin Corp i.e., Redfin Corp and Ohmyhome Limited go up and down completely randomly.

Pair Corralation between Redfin Corp and Ohmyhome Limited

Given the investment horizon of 90 days Redfin Corp is expected to generate 1.43 times more return on investment than Ohmyhome Limited. However, Redfin Corp is 1.43 times more volatile than Ohmyhome Limited Ordinary. It trades about 0.08 of its potential returns per unit of risk. Ohmyhome Limited Ordinary is currently generating about -0.1 per unit of risk. If you would invest  794.00  in Redfin Corp on December 29, 2024 and sell it today you would earn a total of  228.00  from holding Redfin Corp or generate 28.72% return on investment over 90 days.

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

Redfin Corp  vs.  Ohmyhome Limited Ordinary

Redfin Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Redfin Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Redfin Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

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 Redfin Corp and Ohmyhome Limited

The main advantage of trading using opposite Redfin Corp and Ohmyhome Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Redfin Corp 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 Redfin Corp 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.