Correlation Between MACOM Technology and Omni Health
Can any of the company-specific risk be diversified away by investing in both MACOM Technology 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 MACOM Technology and Omni Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MACOM Technology Solutions and Omni Health, you can compare the effects of market volatilities on MACOM Technology 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 MACOM Technology with a short position of Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and Omni Health.
Diversification Opportunities for MACOM Technology and Omni Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MACOM and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions and Omni Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Health and MACOM Technology 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 MACOM Technology Solutions 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 MACOM Technology i.e., MACOM Technology and Omni Health go up and down completely randomly.
Pair Corralation between MACOM Technology and Omni Health
If you would invest 6,047 in MACOM Technology Solutions on August 31, 2024 and sell it today you would earn a total of 7,235 from holding MACOM Technology Solutions or generate 119.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
MACOM Technology Solutions vs. Omni Health
Performance |
| Timeline |
| MACOM Technology Sol |
| Omni Health |
MACOM Technology and Omni Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MACOM Technology and Omni Health
The main advantage of trading using opposite MACOM Technology and Omni Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACOM Technology 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.| MACOM Technology vs. Power Integrations | MACOM Technology vs. Diodes Incorporated | MACOM Technology vs. Cirrus Logic | MACOM Technology vs. Amkor Technology |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |