Correlation Between Ohmyhome Limited and Brightspire Capital

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

Diversification Opportunities for Ohmyhome Limited and Brightspire Capital

-0.34

Correlation Coefficient

Ohmyhome Limited  Brightspire Capital

Very good diversification

The 3 months correlation between Ohmyhome and Brightspire is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ohmyhome Limited Ordinary and Brightspire Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightspire Capital 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 Brightspire Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightspire Capital has no effect on the direction of Ohmyhome Limited i.e., Ohmyhome Limited and Brightspire Capital go up and down completely randomly.

Pair Corralation between Ohmyhome Limited and Brightspire Capital

Considering the 90-day investment horizon Ohmyhome Limited Ordinary is expected to under-perform the Brightspire Capital. In addition to that, Ohmyhome Limited is 4.19 times more volatile than Brightspire Capital. It trades about -0.04 of its total potential returns per unit of risk. Brightspire Capital is currently generating about 0.05 per unit of volatility. If you would invest  443.00  in Brightspire Capital on August 31, 2024 and sell it today you would earn a total of  193.00  from holding Brightspire Capital or generate 43.57% return on investment over 90 days.

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

Ohmyhome Limited Ordinary  vs.  Brightspire Capital

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.

Brightspire Capital

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Brightspire Capital are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Brightspire Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ohmyhome Limited and Brightspire Capital

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

The idea behind Ohmyhome Limited Ordinary and Brightspire Capital 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.