Correlation Between Omega Healthcare and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Banco Santander 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 Omega Healthcare and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omega Healthcare Investors, and Banco Santander Chile, you can compare the effects of market volatilities on Omega Healthcare and Banco Santander 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 Omega Healthcare with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Banco Santander.
Diversification Opportunities for Omega Healthcare and Banco Santander
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Omega and Banco is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors, and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile and Omega Healthcare 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 Omega Healthcare Investors, are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Chile has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Banco Santander go up and down completely randomly.
Pair Corralation between Omega Healthcare and Banco Santander
Assuming the 90 days trading horizon Omega Healthcare Investors, is expected to under-perform the Banco Santander. In addition to that, Omega Healthcare is 1.22 times more volatile than Banco Santander Chile. It trades about -0.22 of its total potential returns per unit of risk. Banco Santander Chile is currently generating about 0.17 per unit of volatility. If you would invest 5,773 in Banco Santander Chile on November 3, 2024 and sell it today you would earn a total of 265.00 from holding Banco Santander Chile or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.26% |
| Values | Daily Returns |
Omega Healthcare Investors, vs. Banco Santander Chile
Performance |
| Timeline |
| Omega Healthcare Inv |
| Banco Santander Chile |
Omega Healthcare and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Banco Santander
The main advantage of trading using opposite Omega Healthcare and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| Omega Healthcare vs. Deutsche Bank Aktiengesellschaft | Omega Healthcare vs. Darden Restaurants, | Omega Healthcare vs. Bank of America | Omega Healthcare vs. SVB Financial Group |
| Banco Santander vs. Warner Music Group | Banco Santander vs. Tyson Foods | Banco Santander vs. Academy Sports and | Banco Santander vs. Apartment Investment and |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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