Correlation Between Everyman Media and Omega Healthcare
Can any of the company-specific risk be diversified away by investing in both Everyman Media and Omega Healthcare 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 Everyman Media and Omega Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everyman Media Group and Omega Healthcare Investors, you can compare the effects of market volatilities on Everyman Media and Omega Healthcare 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 Everyman Media with a short position of Omega Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everyman Media and Omega Healthcare.
Diversification Opportunities for Everyman Media and Omega Healthcare
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Everyman and Omega is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Everyman Media Group and Omega Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Healthcare Inv and Everyman Media 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 Everyman Media Group are associated (or correlated) with Omega Healthcare. 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 Inv has no effect on the direction of Everyman Media i.e., Everyman Media and Omega Healthcare go up and down completely randomly.
Pair Corralation between Everyman Media and Omega Healthcare
Assuming the 90 days trading horizon Everyman Media Group is expected to under-perform the Omega Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Everyman Media Group is 2.49 times less risky than Omega Healthcare. The stock trades about -0.33 of its potential returns per unit of risk. The Omega Healthcare Investors is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,984 in Omega Healthcare Investors on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Omega Healthcare Investors or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Everyman Media Group vs. Omega Healthcare Investors
Performance |
| Timeline |
| Everyman Media Group |
| Omega Healthcare Inv |
Everyman Media and Omega Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everyman Media and Omega Healthcare
The main advantage of trading using opposite Everyman Media and Omega Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everyman Media position performs unexpectedly, Omega Healthcare 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 Healthcare will offset losses from the drop in Omega Healthcare's long position.| Everyman Media vs. Gaming Realms plc | Everyman Media vs. Leroy Seafood Group | Everyman Media vs. Edita Food Industries | Everyman Media vs. Sligro Food Group |
| Omega Healthcare vs. Flow Traders NV | Omega Healthcare vs. Molson Coors Beverage | Omega Healthcare vs. Ebro Foods | Omega Healthcare vs. Premier Foods 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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