Correlation Between Aspen Insurance and Omni Health
Can any of the company-specific risk be diversified away by investing in both Aspen Insurance and Omni Health 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 Aspen Insurance and Omni Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Insurance Holdings and Omni Health, you can compare the effects of market volatilities on Aspen Insurance and Omni Health 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 Aspen Insurance with a short position of Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and Omni Health.
Diversification Opportunities for Aspen Insurance and Omni Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aspen and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and Omni Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Health and Aspen Insurance 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 Aspen Insurance Holdings are associated (or correlated) with Omni Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Health has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and Omni Health go up and down completely randomly.
Pair Corralation between Aspen Insurance and Omni Health
If you would invest 1,934 in Aspen Insurance Holdings on September 2, 2024 and sell it today you would earn a total of 274.00 from holding Aspen Insurance Holdings or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. Omni Health
Performance |
| Timeline |
| Aspen Insurance Holdings |
| Omni Health |
Aspen Insurance and Omni Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and Omni Health
The main advantage of trading using opposite Aspen Insurance and Omni Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, Omni Health 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 Omni Health will offset losses from the drop in Omni Health's long position.| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Selective Insurance Group | Aspen Insurance vs. The Allstate | Aspen Insurance vs. AmTrust Financial Services |
| Omni Health vs. Walgreens Boots Alliance | Omni Health vs. PetMed Express | Omni Health vs. China Jo Jo Drugstores | Omni Health vs. Leafly 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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