Correlation Between Omega Healthcare and Zinc Media
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Zinc 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 Zinc 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 Zinc Media Group, you can compare the effects of market volatilities on Omega Healthcare and Zinc 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 Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Zinc Media.
Diversification Opportunities for Omega Healthcare and Zinc Media
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Omega and Zinc is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc 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 Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Zinc Media go up and down completely randomly.
Pair Corralation between Omega Healthcare and Zinc Media
Assuming the 90 days trading horizon Omega Healthcare Investors is expected to generate 3.19 times more return on investment than Zinc Media. However, Omega Healthcare is 3.19 times more volatile than Zinc Media Group. It trades about 0.07 of its potential returns per unit of risk. Zinc Media Group is currently generating about -0.22 per unit of risk. If you would invest 3,688 in Omega Healthcare Investors on December 11, 2024 and sell it today you would earn a total of 73.00 from holding Omega Healthcare Investors or generate 1.98% 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. Zinc Media Group
Performance |
| Timeline |
| Omega Healthcare Inv |
| Zinc Media Group |
Omega Healthcare and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Zinc Media
The main advantage of trading using opposite Omega Healthcare and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Zinc 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| Omega Healthcare vs. Target Healthcare REIT | Omega Healthcare vs. Norman Broadbent Plc | Omega Healthcare vs. Axway Software SA | Omega Healthcare vs. Spire Healthcare Group |
| Zinc Media vs. Direct Line Insurance | Zinc Media vs. Travel Leisure Co | Zinc Media vs. Allianz Technology Trust | Zinc Media vs. Vienna Insurance Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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