Correlation Between Omega Healthcare and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Jefferies Financial 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 Jefferies Financial 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 Jefferies Financial Group, you can compare the effects of market volatilities on Omega Healthcare and Jefferies Financial 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 Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Jefferies Financial.
Diversification Opportunities for Omega Healthcare and Jefferies Financial
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Omega and Jefferies is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors, and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial 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 Jefferies Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jefferies Financial has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Jefferies Financial go up and down completely randomly.
Pair Corralation between Omega Healthcare and Jefferies Financial
Assuming the 90 days trading horizon Omega Healthcare Investors, is expected to generate 0.52 times more return on investment than Jefferies Financial. However, Omega Healthcare Investors, is 1.94 times less risky than Jefferies Financial. It trades about -0.16 of its potential returns per unit of risk. Jefferies Financial Group is currently generating about -0.17 per unit of risk. If you would invest 7,790 in Omega Healthcare Investors, on November 7, 2024 and sell it today you would lose (417.00) from holding Omega Healthcare Investors, or give up 5.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omega Healthcare Investors, vs. Jefferies Financial Group
Performance |
| Timeline |
| Omega Healthcare Inv |
| Jefferies Financial |
Omega Healthcare and Jefferies Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Jefferies Financial
The main advantage of trading using opposite Omega Healthcare and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Jefferies Financial 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 Jefferies Financial will offset losses from the drop in Jefferies Financial's long position.| Omega Healthcare vs. Taiwan Semiconductor Manufacturing | Omega Healthcare vs. Apple Inc | Omega Healthcare vs. Alibaba Group Holding | Omega Healthcare vs. Microsoft |
| Jefferies Financial vs. Monster Beverage | Jefferies Financial vs. SSC Technologies Holdings, | Jefferies Financial vs. Tyson Foods | Jefferies Financial vs. Zoom Video Communications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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