Correlation Between Omni Financial and RBC Bearings
Can any of the company-specific risk be diversified away by investing in both Omni Financial and RBC Bearings 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 Omni Financial and RBC Bearings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omni Financial Services and RBC Bearings Incorporated, you can compare the effects of market volatilities on Omni Financial and RBC Bearings 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 Omni Financial with a short position of RBC Bearings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Financial and RBC Bearings.
Diversification Opportunities for Omni Financial and RBC Bearings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omni and RBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omni Financial Services and RBC Bearings Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Bearings and Omni Financial 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 Omni Financial Services are associated (or correlated) with RBC Bearings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Bearings has no effect on the direction of Omni Financial i.e., Omni Financial and RBC Bearings go up and down completely randomly.
Pair Corralation between Omni Financial and RBC Bearings
If you would invest 0.01 in Omni Financial Services on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Omni Financial Services or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Omni Financial Services vs. RBC Bearings Incorporated
Performance |
| Timeline |
| Omni Financial Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| RBC Bearings |
Omni Financial and RBC Bearings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Financial and RBC Bearings
The main advantage of trading using opposite Omni Financial and RBC Bearings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Financial position performs unexpectedly, RBC Bearings 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 RBC Bearings will offset losses from the drop in RBC Bearings' long position.| Omni Financial vs. Brunswick | Omni Financial vs. BRP Inc | Omni Financial vs. Emerson Radio | Omni Financial vs. Playtech plc |
| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Toro Co | RBC Bearings vs. Timken Company | RBC Bearings vs. Eastern Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |