Correlation Between Omni Health and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both Omni Health and CapitaLand Investment 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 Omni Health and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omni Health and CapitaLand Investment Limited, you can compare the effects of market volatilities on Omni Health and CapitaLand Investment 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 Omni Health with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Health and CapitaLand Investment.
Diversification Opportunities for Omni Health and CapitaLand Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omni and CapitaLand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omni Health and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and Omni Health 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 Omni Health are associated (or correlated) with CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of Omni Health i.e., Omni Health and CapitaLand Investment go up and down completely randomly.
Pair Corralation between Omni Health and CapitaLand Investment
Given the investment horizon of 90 days Omni Health is expected to generate 113.61 times more return on investment than CapitaLand Investment. However, Omni Health is 113.61 times more volatile than CapitaLand Investment Limited. It trades about 0.21 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about -0.21 per unit of risk. If you would invest 0.00 in Omni Health on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Omni Health or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Omni Health vs. CapitaLand Investment Limited
Performance |
| Timeline |
| Omni Health |
| CapitaLand Investment |
Omni Health and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Health and CapitaLand Investment
The main advantage of trading using opposite Omni Health and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Health position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.| Omni Health vs. Embotelladora Andina SA | Omni Health vs. Signet International Holdings | Omni Health vs. National Beverage Corp | Omni Health vs. PT Astra International |
| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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