Correlation Between Omnicom and HAKUHODO
Can any of the company-specific risk be diversified away by investing in both Omnicom and HAKUHODO 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 Omnicom and HAKUHODO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omnicom Group and HAKUHODO DY HLDG, you can compare the effects of market volatilities on Omnicom and HAKUHODO 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 Omnicom with a short position of HAKUHODO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omnicom and HAKUHODO.
Diversification Opportunities for Omnicom and HAKUHODO
Pay attention - limited upside
The 3 months correlation between Omnicom and HAKUHODO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omnicom Group and HAKUHODO DY HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAKUHODO DY HLDG and Omnicom 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 Omnicom Group are associated (or correlated) with HAKUHODO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAKUHODO DY HLDG has no effect on the direction of Omnicom i.e., Omnicom and HAKUHODO go up and down completely randomly.
Pair Corralation between Omnicom and HAKUHODO
If you would invest 8,157 in Omnicom Group on October 18, 2024 and sell it today you would earn a total of 83.00 from holding Omnicom Group or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Omnicom Group vs. HAKUHODO DY HLDG
Performance |
| Timeline |
| Omnicom Group |
| HAKUHODO DY HLDG |
Omnicom and HAKUHODO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omnicom and HAKUHODO
The main advantage of trading using opposite Omnicom and HAKUHODO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omnicom position performs unexpectedly, HAKUHODO 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 HAKUHODO will offset losses from the drop in HAKUHODO's long position.| Omnicom vs. Publicis Groupe SA | Omnicom vs. The Interpublic Group | Omnicom vs. WPP PLC | Omnicom vs. WPP PLC ADR |
| HAKUHODO vs. Publicis Groupe SA | HAKUHODO vs. Omnicom Group | HAKUHODO vs. The Interpublic Group | HAKUHODO vs. WPP PLC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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