Correlation Between Maui Land and Ohmyhome Limited

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

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

Diversification Opportunities for Maui Land and Ohmyhome Limited

-0.03

Correlation Coefficient

Maui Land  Ohmyhome Limited

Good diversification

The 3 months correlation between Maui and Ohmyhome is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple 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 Maui Land 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 Maui Land Pineapple 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 Maui Land i.e., Maui Land and Ohmyhome Limited go up and down completely randomly.

Pair Corralation between Maui Land and Ohmyhome Limited

Considering the 90-day investment horizon Maui Land is expected to generate 1.98 times less return on investment than Ohmyhome Limited. But when comparing it to its historical volatility, Maui Land Pineapple is 1.81 times less risky than Ohmyhome Limited. It trades about 0.01 of its potential returns per unit of risk. Ohmyhome Limited Ordinary is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  42.00  in Ohmyhome Limited Ordinary on September 2, 2024 and sell it today you would lose (3.00) from holding Ohmyhome Limited Ordinary or give up 7.14% of portfolio value over 90 days.

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

Maui Land Pineapple  vs.  Ohmyhome Limited Ordinary

Maui Land Pineapple

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maui Land Pineapple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Maui Land is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Ohmyhome Limited Ordinary

Risk-Adjusted Performance

0 of 100

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 fairly strong primary indicators, Ohmyhome Limited is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Maui Land and Ohmyhome Limited

The main advantage of trading using opposite Maui Land and Ohmyhome Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land 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 Maui Land Pineapple 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..