Correlation Between BRP and Omni Financial
Can any of the company-specific risk be diversified away by investing in both BRP and Omni Financial 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 BRP and Omni Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRP Inc and Omni Financial Services, you can compare the effects of market volatilities on BRP and Omni Financial 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 BRP with a short position of Omni Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRP and Omni Financial.
Diversification Opportunities for BRP and Omni Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRP and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BRP Inc and Omni Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Financial Services and BRP 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 BRP Inc are associated (or correlated) with Omni Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Financial Services has no effect on the direction of BRP i.e., BRP and Omni Financial go up and down completely randomly.
Pair Corralation between BRP and Omni Financial
If you would invest 4,865 in BRP Inc on September 20, 2024 and sell it today you would earn a total of 313.00 from holding BRP Inc or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
BRP Inc vs. Omni Financial Services
Performance |
| Timeline |
| BRP Inc |
| Omni Financial Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BRP and Omni Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRP and Omni Financial
The main advantage of trading using opposite BRP and Omni Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRP position performs unexpectedly, Omni Financial 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 Financial will offset losses from the drop in Omni Financial's long position.The idea behind BRP Inc and Omni Financial Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Omni Financial vs. Brunswick | Omni Financial vs. BRP Inc | Omni Financial vs. Emerson Radio | Omni Financial vs. Playtech 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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