Correlation Between MDJM and Ohmyhome Limited

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

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

Diversification Opportunities for MDJM and Ohmyhome Limited

0.48

Correlation Coefficient

MDJM  Ohmyhome Limited

Very weak diversification

The 3 months correlation between MDJM and Ohmyhome is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding MDJM 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 MDJM 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 MDJM 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 MDJM i.e., MDJM and Ohmyhome Limited go up and down completely randomly.

Pair Corralation between MDJM and Ohmyhome Limited

Given the investment horizon of 90 days MDJM is expected to under-perform the Ohmyhome Limited. In addition to that, MDJM is 2.12 times more volatile than Ohmyhome Limited Ordinary. It trades about -0.17 of its total potential returns per unit of risk. Ohmyhome Limited Ordinary is currently generating about 0.01 per unit of volatility. If you would invest  42.00  in Ohmyhome Limited Ordinary on August 31, 2024 and sell it today you would lose (2.00) from holding Ohmyhome Limited Ordinary or give up 4.76% of portfolio value over 90 days.

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

MDJM  vs.  Ohmyhome Limited Ordinary

MDJM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MDJM has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward-looking indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Ohmyhome Limited Ordinary

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ohmyhome Limited Ordinary are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong primary indicators, Ohmyhome Limited is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with MDJM and Ohmyhome Limited

The main advantage of trading using opposite MDJM and Ohmyhome Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MDJM 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 MDJM 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.