Correlation Between Omega Healthcare and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Everyman 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 Everyman 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 Everyman Media Group, you can compare the effects of market volatilities on Omega Healthcare and Everyman 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Everyman Media.
Diversification Opportunities for Omega Healthcare and Everyman Media
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Omega and Everyman is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Everyman Media go up and down completely randomly.
Pair Corralation between Omega Healthcare and Everyman Media
Assuming the 90 days trading horizon Omega Healthcare Investors is expected to generate 2.53 times more return on investment than Everyman Media. However, Omega Healthcare is 2.53 times more volatile than Everyman Media Group. It trades about 0.08 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.33 per unit of risk. If you would invest 3,984 in Omega Healthcare Investors on September 3, 2024 and sell it today you would earn a total of 88.00 from holding Omega Healthcare Investors or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omega Healthcare Investors vs. Everyman Media Group
Performance |
| Timeline |
| Omega Healthcare Inv |
| Everyman Media Group |
Omega Healthcare and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Everyman Media
The main advantage of trading using opposite Omega Healthcare and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Everyman 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Omega Healthcare vs. Catalyst Media Group | Omega Healthcare vs. CATLIN GROUP | Omega Healthcare vs. RTW Venture Fund | Omega Healthcare vs. Secure Property Development |
| Everyman Media vs. Amedeo Air Four | Everyman Media vs. Wheaton Precious Metals | Everyman Media vs. Wizz Air Holdings | Everyman Media vs. Hochschild Mining plc |
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 Stocks Directory module to find actively traded stocks across global markets.
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