Correlation Between Omega Healthcare and QUALCOMM
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By analyzing existing cross correlation between Omega Healthcare Investors and QUALCOMM INC 325, you can compare the effects of market volatilities on Omega Healthcare and QUALCOMM 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 QUALCOMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and QUALCOMM.
Diversification Opportunities for Omega Healthcare and QUALCOMM
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Omega and QUALCOMM is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and QUALCOMM INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUALCOMM INC 325 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 QUALCOMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUALCOMM INC 325 has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and QUALCOMM go up and down completely randomly.
Pair Corralation between Omega Healthcare and QUALCOMM
Considering the 90-day investment horizon Omega Healthcare Investors is expected to under-perform the QUALCOMM. In addition to that, Omega Healthcare is 1.47 times more volatile than QUALCOMM INC 325. It trades about -0.08 of its total potential returns per unit of risk. QUALCOMM INC 325 is currently generating about -0.04 per unit of volatility. If you would invest 9,708 in QUALCOMM INC 325 on September 1, 2024 and sell it today you would lose (95.00) from holding QUALCOMM INC 325 or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omega Healthcare Investors vs. QUALCOMM INC 325
Performance |
| Timeline |
| Omega Healthcare Inv |
| QUALCOMM INC 325 |
Omega Healthcare and QUALCOMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and QUALCOMM
The main advantage of trading using opposite Omega Healthcare and QUALCOMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, QUALCOMM 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 QUALCOMM will offset losses from the drop in QUALCOMM'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 |
| QUALCOMM vs. Shake Shack | QUALCOMM vs. IPG Photonics | QUALCOMM vs. GMS Inc | QUALCOMM vs. Meli Hotels International |
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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