Correlation Between Omni Financial and Beauty Health
Can any of the company-specific risk be diversified away by investing in both Omni Financial and Beauty 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 Omni Financial and Beauty Health 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 Beauty Health Co, you can compare the effects of market volatilities on Omni Financial and Beauty 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 Omni Financial with a short position of Beauty Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Financial and Beauty Health.
Diversification Opportunities for Omni Financial and Beauty Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omni and Beauty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omni Financial Services and Beauty Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beauty Health 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 Beauty Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beauty Health has no effect on the direction of Omni Financial i.e., Omni Financial and Beauty Health go up and down completely randomly.
Pair Corralation between Omni Financial and Beauty Health
If you would invest 0.01 in Omni Financial Services on September 19, 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 | 26.67% |
| Values | Daily Returns |
Omni Financial Services vs. Beauty Health Co
Performance |
| Timeline |
| Omni Financial Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Beauty Health |
Omni Financial and Beauty Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Financial and Beauty Health
The main advantage of trading using opposite Omni Financial and Beauty Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Financial position performs unexpectedly, Beauty 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 Beauty Health will offset losses from the drop in Beauty Health's long position.| Omni Financial vs. Unilever PLC ADR | Omni Financial vs. Japan Tobacco ADR | Omni Financial vs. Beauty Health Co | Omni Financial vs. Skechers USA |
| Beauty Health vs. Clear Secure | Beauty Health vs. GXO Logistics | Beauty Health vs. Doximity | Beauty Health vs. Figs 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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