Correlation Between Omega Healthcare and US Nuclear
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and US Nuclear 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 US Nuclear 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 US Nuclear Corp, you can compare the effects of market volatilities on Omega Healthcare and US Nuclear 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 US Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and US Nuclear.
Diversification Opportunities for Omega Healthcare and US Nuclear
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Omega and UCLE is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and US Nuclear Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Nuclear 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 US Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Nuclear Corp has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and US Nuclear go up and down completely randomly.
Pair Corralation between Omega Healthcare and US Nuclear
Considering the 90-day investment horizon Omega Healthcare is expected to generate 217.52 times less return on investment than US Nuclear. But when comparing it to its historical volatility, Omega Healthcare Investors is 39.25 times less risky than US Nuclear. It trades about 0.04 of its potential returns per unit of risk. US Nuclear Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1.20 in US Nuclear Corp on August 31, 2024 and sell it today you would earn a total of 1.90 from holding US Nuclear Corp or generate 158.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omega Healthcare Investors vs. US Nuclear Corp
Performance |
| Timeline |
| Omega Healthcare Inv |
| US Nuclear Corp |
Omega Healthcare and US Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and US Nuclear
The main advantage of trading using opposite Omega Healthcare and US Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, US Nuclear 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 US Nuclear will offset losses from the drop in US Nuclear'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 |
| US Nuclear vs. Sono Tek Corp | US Nuclear vs. Novanta | US Nuclear vs. ESCO Technologies | US Nuclear vs. Vontier Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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