Correlation Between Knife River and Omni Health
Can any of the company-specific risk be diversified away by investing in both Knife River 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 Knife River and Omni Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knife River and Omni Health, you can compare the effects of market volatilities on Knife River 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 Knife River with a short position of Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knife River and Omni Health.
Diversification Opportunities for Knife River and Omni Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Knife and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Knife River and Omni Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Health and Knife River 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 Knife River 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 Knife River i.e., Knife River and Omni Health go up and down completely randomly.
Pair Corralation between Knife River and Omni Health
If you would invest 3,551 in Knife River on September 5, 2024 and sell it today you would earn a total of 6,801 from holding Knife River or generate 191.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.69% |
| Values | Daily Returns |
Knife River vs. Omni Health
Performance |
| Timeline |
| Knife River |
| Omni Health |
Knife River and Omni Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knife River and Omni Health
The main advantage of trading using opposite Knife River and Omni Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knife River 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.| Knife River vs. Omni Health | Knife River vs. Valneva SE ADR | Knife River vs. Alvotech | Knife River vs. RadNet Inc |
| Omni Health vs. Caf Serendipity Holdings | Omni Health vs. Green Cures Botanical | Omni Health vs. Vapor Group | Omni Health vs. Ubiquitech Software |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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