Correlation Between Dow Jones and OMEGA
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By analyzing existing cross correlation between Dow Jones Industrial and OMEGA HEALTHCARE INVS, you can compare the effects of market volatilities on Dow Jones and OMEGA 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 Dow Jones with a short position of OMEGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and OMEGA.
Diversification Opportunities for Dow Jones and OMEGA
Very good diversification
The 3 months correlation between Dow and OMEGA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and OMEGA HEALTHCARE INVS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMEGA HEALTHCARE INVS and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with OMEGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMEGA HEALTHCARE INVS has no effect on the direction of Dow Jones i.e., Dow Jones and OMEGA go up and down completely randomly.
Pair Corralation between Dow Jones and OMEGA
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.13 times more return on investment than OMEGA. However, Dow Jones is 1.13 times more volatile than OMEGA HEALTHCARE INVS. It trades about 0.26 of its potential returns per unit of risk. OMEGA HEALTHCARE INVS is currently generating about -0.2 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dow Jones Industrial vs. OMEGA HEALTHCARE INVS
Performance |
| Timeline |
Dow Jones and OMEGA Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
OMEGA HEALTHCARE INVS
Pair trading matchups for OMEGA
Pair Trading with Dow Jones and OMEGA
The main advantage of trading using opposite Dow Jones and OMEGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, OMEGA 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 OMEGA will offset losses from the drop in OMEGA's long position.| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
| OMEGA vs. Western Acquisition Ventures | OMEGA vs. SEI Investments | OMEGA vs. Sealed Air | OMEGA vs. Stepan Company |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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