Correlation Between Omega Healthcare and Nexstar
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By analyzing existing cross correlation between Omega Healthcare Investors and Nexstar Escrow 5625, you can compare the effects of market volatilities on Omega Healthcare and Nexstar 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 Nexstar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Nexstar.
Diversification Opportunities for Omega Healthcare and Nexstar
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Omega and Nexstar is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Nexstar Escrow 5625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Escrow 5625 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 Nexstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Escrow 5625 has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Nexstar go up and down completely randomly.
Pair Corralation between Omega Healthcare and Nexstar
Considering the 90-day investment horizon Omega Healthcare is expected to generate 22.93 times less return on investment than Nexstar. But when comparing it to its historical volatility, Omega Healthcare Investors is 44.09 times less risky than Nexstar. It trades about 0.09 of its potential returns per unit of risk. Nexstar Escrow 5625 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,279 in Nexstar Escrow 5625 on August 28, 2024 and sell it today you would earn a total of 627.00 from holding Nexstar Escrow 5625 or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Omega Healthcare Investors vs. Nexstar Escrow 5625
Performance |
| Timeline |
| Omega Healthcare Inv |
| Nexstar Escrow 5625 |
Omega Healthcare and Nexstar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Nexstar
The main advantage of trading using opposite Omega Healthcare and Nexstar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Nexstar 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 Nexstar will offset losses from the drop in Nexstar'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 |
| Nexstar vs. Ainsworth Game Technology | Nexstar vs. NioCorp Developments Ltd | Nexstar vs. Mesa Air Group | Nexstar vs. Wicket Gaming AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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