Correlation Between Helios Technologies and Omega Flex
Can any of the company-specific risk be diversified away by investing in both Helios Technologies and Omega Flex 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 Helios Technologies and Omega Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Technologies and Omega Flex, you can compare the effects of market volatilities on Helios Technologies and Omega Flex 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 Helios Technologies with a short position of Omega Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Technologies and Omega Flex.
Diversification Opportunities for Helios Technologies and Omega Flex
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Helios and Omega is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Helios Technologies and Omega Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Flex and Helios Technologies 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 Helios Technologies are associated (or correlated) with Omega Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Flex has no effect on the direction of Helios Technologies i.e., Helios Technologies and Omega Flex go up and down completely randomly.
Pair Corralation between Helios Technologies and Omega Flex
Given the investment horizon of 90 days Helios Technologies is expected to generate 1.11 times more return on investment than Omega Flex. However, Helios Technologies is 1.11 times more volatile than Omega Flex. It trades about -0.02 of its potential returns per unit of risk. Omega Flex is currently generating about -0.09 per unit of risk. If you would invest 6,428 in Helios Technologies on October 24, 2024 and sell it today you would lose (1,874) from holding Helios Technologies or give up 29.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helios Technologies vs. Omega Flex
Performance |
| Timeline |
| Helios Technologies |
| Omega Flex |
Helios Technologies and Omega Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Technologies and Omega Flex
The main advantage of trading using opposite Helios Technologies and Omega Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Technologies position performs unexpectedly, Omega Flex 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 Flex will offset losses from the drop in Omega Flex's long position.| Helios Technologies vs. Enpro Industries | Helios Technologies vs. Omega Flex | Helios Technologies vs. Luxfer Holdings PLC | Helios Technologies vs. Hurco Companies |
| Omega Flex vs. Helios Technologies | Omega Flex vs. Enpro Industries | Omega Flex vs. Luxfer Holdings PLC | Omega Flex vs. Hurco Companies |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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