Correlation Between CapitaLand Investment and Omni Health
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment 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 CapitaLand Investment and Omni Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Investment Limited and Omni Health, you can compare the effects of market volatilities on CapitaLand Investment 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 CapitaLand Investment with a short position of Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Omni Health.
Diversification Opportunities for CapitaLand Investment and Omni Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CapitaLand and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Omni Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Health and CapitaLand Investment 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 CapitaLand Investment Limited 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 CapitaLand Investment i.e., CapitaLand Investment and Omni Health go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Omni Health
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the Omni Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, CapitaLand Investment Limited is 111.11 times less risky than Omni Health. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Omni Health is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Omni Health on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Omni Health or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Omni Health
Performance |
| Timeline |
| CapitaLand Investment |
| Omni Health |
CapitaLand Investment and Omni Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Omni Health
The main advantage of trading using opposite CapitaLand Investment and Omni Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment 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.| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
| Omni Health vs. Embotelladora Andina SA | Omni Health vs. Signet International Holdings | Omni Health vs. National Beverage Corp | Omni Health vs. PT Astra International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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