Correlation Between Omega Healthcare and Teladoc Health
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Teladoc 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 Omega Healthcare and Teladoc Health 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 Teladoc Health, you can compare the effects of market volatilities on Omega Healthcare and Teladoc 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 Omega Healthcare with a short position of Teladoc Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Teladoc Health.
Diversification Opportunities for Omega Healthcare and Teladoc Health
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Omega and Teladoc is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors, and Teladoc Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladoc Health 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 Teladoc Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladoc Health has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Teladoc Health go up and down completely randomly.
Pair Corralation between Omega Healthcare and Teladoc Health
Assuming the 90 days trading horizon Omega Healthcare Investors, is expected to under-perform the Teladoc Health. But the stock apears to be less risky and, when comparing its historical volatility, Omega Healthcare Investors, is 2.08 times less risky than Teladoc Health. The stock trades about -0.24 of its potential returns per unit of risk. The Teladoc Health is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 192.00 in Teladoc Health on November 5, 2024 and sell it today you would lose (2.00) from holding Teladoc Health or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Omega Healthcare Investors, vs. Teladoc Health
Performance |
| Timeline |
| Omega Healthcare Inv |
| Teladoc Health |
Omega Healthcare and Teladoc Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Teladoc Health
The main advantage of trading using opposite Omega Healthcare and Teladoc Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Teladoc 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 Teladoc Health will offset losses from the drop in Teladoc Health'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 |
| Teladoc Health vs. Waste Management | Teladoc Health vs. Marfrig Global Foods | Teladoc Health vs. Pentair plc | Teladoc Health vs. LPL Financial Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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