Correlation Between Omni Health and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Omni Health and Mapletree Logistics 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 Mapletree Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omni Health and Mapletree Logistics Trust, you can compare the effects of market volatilities on Omni Health and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Health and Mapletree Logistics.
Diversification Opportunities for Omni Health and Mapletree Logistics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omni and Mapletree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omni Health and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Omni Health i.e., Omni Health and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Omni Health and Mapletree Logistics
Given the investment horizon of 90 days Omni Health is expected to generate 199.83 times more return on investment than Mapletree Logistics. However, Omni Health is 199.83 times more volatile than Mapletree Logistics Trust. It trades about 0.22 of its potential returns per unit of risk. Mapletree Logistics Trust is currently generating about -0.35 per unit of risk. If you would invest 0.00 in Omni Health on September 13, 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 | 100.0% |
| Values | Daily Returns |
Omni Health vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Omni Health |
| Mapletree Logistics Trust |
Omni Health and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Health and Mapletree Logistics
The main advantage of trading using opposite Omni Health and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Health position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| Omni Health vs. Caf Serendipity Holdings | Omni Health vs. Green Cures Botanical | Omni Health vs. Vapor Group | Omni Health vs. Ubiquitech Software |
| Mapletree Logistics vs. Biglari Holdings | Mapletree Logistics vs. The Cheesecake Factory | Mapletree Logistics vs. Dennys Corp | Mapletree Logistics vs. Playa Hotels Resorts |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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