Correlation Between Omega Healthcare and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Centaur Media 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 Centaur Media 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 Centaur Media, you can compare the effects of market volatilities on Omega Healthcare and Centaur Media 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 Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Centaur Media.
Diversification Opportunities for Omega Healthcare and Centaur Media
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Omega and Centaur is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media 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 Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Centaur Media go up and down completely randomly.
Pair Corralation between Omega Healthcare and Centaur Media
Assuming the 90 days trading horizon Omega Healthcare Investors is expected to generate 0.87 times more return on investment than Centaur Media. However, Omega Healthcare Investors is 1.14 times less risky than Centaur Media. It trades about 0.06 of its potential returns per unit of risk. Centaur Media is currently generating about -0.25 per unit of risk. If you would invest 3,984 in Omega Healthcare Investors on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Omega Healthcare Investors or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omega Healthcare Investors vs. Centaur Media
Performance |
| Timeline |
| Omega Healthcare Inv |
| Centaur Media |
Omega Healthcare and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Centaur Media
The main advantage of trading using opposite Omega Healthcare and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| Omega Healthcare vs. Flow Traders NV | Omega Healthcare vs. Molson Coors Beverage | Omega Healthcare vs. Ebro Foods | Omega Healthcare vs. Premier Foods PLC |
| Centaur Media vs. Quadrise Plc | Centaur Media vs. ImmuPharma PLC | Centaur Media vs. Intuitive Investments Group | Centaur Media vs. European Metals Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |