Correlation Between Omega Healthcare and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Sligro Food 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 Omega Healthcare and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omega Healthcare Investors and Sligro Food Group, you can compare the effects of market volatilities on Omega Healthcare and Sligro Food 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 Omega Healthcare with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Sligro Food.
Diversification Opportunities for Omega Healthcare and Sligro Food
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Omega and Sligro is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group and Omega Healthcare 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 Omega Healthcare Investors are associated (or correlated) with Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Sligro Food go up and down completely randomly.
Pair Corralation between Omega Healthcare and Sligro Food
Assuming the 90 days trading horizon Omega Healthcare Investors is expected to under-perform the Sligro Food. In addition to that, Omega Healthcare is 1.13 times more volatile than Sligro Food Group. It trades about -0.09 of its total potential returns per unit of risk. Sligro Food Group is currently generating about -0.08 per unit of volatility. If you would invest 1,150 in Sligro Food Group on November 1, 2024 and sell it today you would lose (76.00) from holding Sligro Food Group or give up 6.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Omega Healthcare Investors vs. Sligro Food Group
Performance |
| Timeline |
| Omega Healthcare Inv |
| Sligro Food Group |
Omega Healthcare and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Sligro Food
The main advantage of trading using opposite Omega Healthcare and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Omega Healthcare vs. Bloomsbury Publishing Plc | Omega Healthcare vs. Roebuck Food Group | Omega Healthcare vs. BW Offshore | Omega Healthcare vs. Ebro Foods |
| Sligro Food vs. Batm Advanced Communications | Sligro Food vs. United Internet AG | Sligro Food vs. Zegona Communications Plc | Sligro Food vs. Zoom Video Communications |
Check out your portfolio center.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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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