Correlation Between Omni Financial and Skechers USA
Can any of the company-specific risk be diversified away by investing in both Omni Financial and Skechers USA 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 Skechers USA 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 Skechers USA, you can compare the effects of market volatilities on Omni Financial and Skechers USA 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 Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Financial and Skechers USA.
Diversification Opportunities for Omni Financial and Skechers USA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omni and Skechers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omni Financial Services and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA 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 Skechers USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skechers USA has no effect on the direction of Omni Financial i.e., Omni Financial and Skechers USA go up and down completely randomly.
Pair Corralation between Omni Financial and Skechers USA
If you would invest 4,195 in Skechers USA on September 20, 2024 and sell it today you would earn a total of 2,634 from holding Skechers USA or generate 62.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 26.46% |
| Values | Daily Returns |
Omni Financial Services vs. Skechers USA
Performance |
| Timeline |
| Omni Financial Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Skechers USA |
Omni Financial and Skechers USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Financial and Skechers USA
The main advantage of trading using opposite Omni Financial and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Financial position performs unexpectedly, Skechers USA 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 Skechers USA will offset losses from the drop in Skechers USA's long position.| Omni Financial vs. Brunswick | Omni Financial vs. BRP Inc | Omni Financial vs. Emerson Radio | Omni Financial vs. Playtech 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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