Correlation Between Life Time and Omni Health
Can any of the company-specific risk be diversified away by investing in both Life Time 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 Life Time and Omni Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and Omni Health, you can compare the effects of market volatilities on Life Time 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 Life Time with a short position of Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Omni Health.
Diversification Opportunities for Life Time and Omni Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Life and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and Omni Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Health and Life Time 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 Life Time Group 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 Life Time i.e., Life Time and Omni Health go up and down completely randomly.
Pair Corralation between Life Time and Omni Health
Considering the 90-day investment horizon Life Time Group is expected to under-perform the Omni Health. But the stock apears to be less risky and, when comparing its historical volatility, Life Time Group is 159.12 times less risky than Omni Health. The stock trades about -0.11 of its potential returns per unit of risk. The Omni Health is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Omni Health on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Omni Health or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Life Time Group vs. Omni Health
Performance |
| Timeline |
| Life Time Group |
| Omni Health |
Life Time and Omni Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and Omni Health
The main advantage of trading using opposite Life Time and Omni Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time 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.| Life Time vs. Planet Fitness | Life Time vs. Bowlero Corp | Life Time vs. JAKKS Pacific | Life Time vs. Acushnet Holdings Corp |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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