Correlation Between Omnicell and National Research
Can any of the company-specific risk be diversified away by investing in both Omnicell and National Research 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 Omnicell and National Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omnicell and National Research Corp, you can compare the effects of market volatilities on Omnicell and National Research 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 Omnicell with a short position of National Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omnicell and National Research.
Diversification Opportunities for Omnicell and National Research
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Omnicell and National is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Omnicell and National Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Research Corp and Omnicell 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 Omnicell are associated (or correlated) with National Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Research Corp has no effect on the direction of Omnicell i.e., Omnicell and National Research go up and down completely randomly.
Pair Corralation between Omnicell and National Research
Given the investment horizon of 90 days Omnicell is expected to under-perform the National Research. In addition to that, Omnicell is 1.09 times more volatile than National Research Corp. It trades about -0.04 of its total potential returns per unit of risk. National Research Corp is currently generating about 0.13 per unit of volatility. If you would invest 1,816 in National Research Corp on September 2, 2024 and sell it today you would earn a total of 150.00 from holding National Research Corp or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omnicell vs. National Research Corp
Performance |
| Timeline |
| Omnicell |
| National Research Corp |
Omnicell and National Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omnicell and National Research
The main advantage of trading using opposite Omnicell and National Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omnicell position performs unexpectedly, National Research 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 National Research will offset losses from the drop in National Research's long position.| Omnicell vs. HealthStream | Omnicell vs. National Research Corp | Omnicell vs. Forian Inc | Omnicell vs. Definitive Healthcare Corp |
| National Research vs. Omega Flex | National Research vs. NI Holdings | National Research vs. PC Connection | National Research vs. Northrim BanCorp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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