Correlation Between Omega Flex and Nuburu
Can any of the company-specific risk be diversified away by investing in both Omega Flex and Nuburu 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 Flex and Nuburu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omega Flex and Nuburu Inc, you can compare the effects of market volatilities on Omega Flex and Nuburu 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 Flex with a short position of Nuburu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Flex and Nuburu.
Diversification Opportunities for Omega Flex and Nuburu
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Omega and Nuburu is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Omega Flex and Nuburu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuburu Inc and Omega Flex 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 Flex are associated (or correlated) with Nuburu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuburu Inc has no effect on the direction of Omega Flex i.e., Omega Flex and Nuburu go up and down completely randomly.
Pair Corralation between Omega Flex and Nuburu
Given the investment horizon of 90 days Omega Flex is expected to under-perform the Nuburu. But the stock apears to be less risky and, when comparing its historical volatility, Omega Flex is 15.08 times less risky than Nuburu. The stock trades about -0.41 of its potential returns per unit of risk. The Nuburu Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Nuburu Inc on September 24, 2024 and sell it today you would earn a total of 3.00 from holding Nuburu Inc or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omega Flex vs. Nuburu Inc
Performance |
| Timeline |
| Omega Flex |
| Nuburu Inc |
Omega Flex and Nuburu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Flex and Nuburu
The main advantage of trading using opposite Omega Flex and Nuburu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Flex position performs unexpectedly, Nuburu 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 Nuburu will offset losses from the drop in Nuburu's long position.| Omega Flex vs. Graco Inc | Omega Flex vs. Ametek Inc | Omega Flex vs. IDEX Corporation | Omega Flex vs. ITT Inc |
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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