Correlation Between Omega Healthcare and Burlington Stores,
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Burlington Stores, 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 Burlington Stores, 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 Burlington Stores,, you can compare the effects of market volatilities on Omega Healthcare and Burlington Stores, 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 Burlington Stores,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Burlington Stores,.
Diversification Opportunities for Omega Healthcare and Burlington Stores,
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Omega and Burlington is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors, and Burlington Stores, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores, 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 Burlington Stores,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burlington Stores, has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Burlington Stores, go up and down completely randomly.
Pair Corralation between Omega Healthcare and Burlington Stores,
Assuming the 90 days trading horizon Omega Healthcare Investors, is expected to under-perform the Burlington Stores,. In addition to that, Omega Healthcare is 1.48 times more volatile than Burlington Stores,. It trades about -0.24 of its total potential returns per unit of risk. Burlington Stores, is currently generating about -0.19 per unit of volatility. If you would invest 5,926 in Burlington Stores, on November 5, 2024 and sell it today you would lose (172.00) from holding Burlington Stores, or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Omega Healthcare Investors, vs. Burlington Stores,
Performance |
| Timeline |
| Omega Healthcare Inv |
| Burlington Stores, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Omega Healthcare and Burlington Stores, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Burlington Stores,
The main advantage of trading using opposite Omega Healthcare and Burlington Stores, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Burlington Stores, 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 Burlington Stores, will offset losses from the drop in Burlington Stores,'s long position.| Omega Healthcare vs. KB Financial Group | Omega Healthcare vs. MAHLE Metal Leve | Omega Healthcare vs. Prudential Financial | Omega Healthcare vs. Nordon Indstrias Metalrgicas |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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