Correlation Between Omega Healthcare and Bim Birlesik
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Bim Birlesik 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 Healthcare and Bim Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omega Healthcare Investors and Bim Birlesik Magazalar, you can compare the effects of market volatilities on Omega Healthcare and Bim Birlesik 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 Healthcare with a short position of Bim Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Bim Birlesik.
Diversification Opportunities for Omega Healthcare and Bim Birlesik
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Omega and Bim is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Bim Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bim Birlesik Magazalar and Omega Healthcare 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 Healthcare Investors are associated (or correlated) with Bim Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bim Birlesik Magazalar has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Bim Birlesik go up and down completely randomly.
Pair Corralation between Omega Healthcare and Bim Birlesik
Considering the 90-day investment horizon Omega Healthcare is expected to generate 38.31 times less return on investment than Bim Birlesik. But when comparing it to its historical volatility, Omega Healthcare Investors is 8.68 times less risky than Bim Birlesik. It trades about 0.04 of its potential returns per unit of risk. Bim Birlesik Magazalar is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 573.00 in Bim Birlesik Magazalar on August 30, 2024 and sell it today you would earn a total of 407.00 from holding Bim Birlesik Magazalar or generate 71.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Omega Healthcare Investors vs. Bim Birlesik Magazalar
Performance |
| Timeline |
| Omega Healthcare Inv |
| Bim Birlesik Magazalar |
Omega Healthcare and Bim Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Bim Birlesik
The main advantage of trading using opposite Omega Healthcare and Bim Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Bim Birlesik 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 Bim Birlesik will offset losses from the drop in Bim Birlesik's long position.| Omega Healthcare vs. LTC Properties | Omega Healthcare vs. Healthpeak Properties | Omega Healthcare vs. Global Medical REIT | Omega Healthcare vs. Sabra Healthcare REIT |
| Bim Birlesik vs. PVH Corp | Bim Birlesik vs. American Eagle Outfitters | Bim Birlesik vs. Alvotech | Bim Birlesik vs. Lipocine |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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