Correlation Between Omega Healthcare and Adamera Minerals
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Adamera Minerals 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 Adamera Minerals 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 Adamera Minerals Corp, you can compare the effects of market volatilities on Omega Healthcare and Adamera Minerals 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 Adamera Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Adamera Minerals.
Diversification Opportunities for Omega Healthcare and Adamera Minerals
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omega and Adamera is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Adamera Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adamera Minerals Corp 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 Adamera Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adamera Minerals Corp has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Adamera Minerals go up and down completely randomly.
Pair Corralation between Omega Healthcare and Adamera Minerals
If you would invest 2.00 in Adamera Minerals Corp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Adamera Minerals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Omega Healthcare Investors vs. Adamera Minerals Corp
Performance |
| Timeline |
| Omega Healthcare Inv |
| Adamera Minerals Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Omega Healthcare and Adamera Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Adamera Minerals
The main advantage of trading using opposite Omega Healthcare and Adamera Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Adamera Minerals 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 Adamera Minerals will offset losses from the drop in Adamera Minerals' long position.| Omega Healthcare vs. LTC Properties | Omega Healthcare vs. Healthpeak Properties | Omega Healthcare vs. Global Medical REIT | Omega Healthcare vs. Sabra Healthcare REIT |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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