Correlation Between Omega Healthcare and CIGNA
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By analyzing existing cross correlation between Omega Healthcare Investors and CIGNA P, you can compare the effects of market volatilities on Omega Healthcare and CIGNA 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 CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and CIGNA.
Diversification Opportunities for Omega Healthcare and CIGNA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Omega and CIGNA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P 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 CIGNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIGNA P has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and CIGNA go up and down completely randomly.
Pair Corralation between Omega Healthcare and CIGNA
Considering the 90-day investment horizon Omega Healthcare Investors is expected to under-perform the CIGNA. In addition to that, Omega Healthcare is 1.67 times more volatile than CIGNA P. It trades about 0.0 of its total potential returns per unit of risk. CIGNA P is currently generating about 0.07 per unit of volatility. If you would invest 8,856 in CIGNA P on August 28, 2024 and sell it today you would earn a total of 110.00 from holding CIGNA P or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Omega Healthcare Investors vs. CIGNA P
Performance |
| Timeline |
| Omega Healthcare Inv |
| CIGNA P |
Omega Healthcare and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and CIGNA
The main advantage of trading using opposite Omega Healthcare and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, CIGNA 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 CIGNA will offset losses from the drop in CIGNA'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 |
| CIGNA vs. AEP TEX INC | CIGNA vs. US BANK NATIONAL | CIGNA vs. Omega Healthcare Investors | CIGNA vs. Zoom Video Communications |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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