Correlation Between Sonida Senior and Occidental
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By analyzing existing cross correlation between Sonida Senior Living and Occidental Petroleum 66, you can compare the effects of market volatilities on Sonida Senior and Occidental 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 Sonida Senior with a short position of Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Occidental.
Diversification Opportunities for Sonida Senior and Occidental
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sonida and Occidental is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and Occidental Petroleum 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum and Sonida Senior 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 Sonida Senior Living are associated (or correlated) with Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Sonida Senior i.e., Sonida Senior and Occidental go up and down completely randomly.
Pair Corralation between Sonida Senior and Occidental
Given the investment horizon of 90 days Sonida Senior is expected to generate 12.43 times less return on investment than Occidental. In addition to that, Sonida Senior is 4.92 times more volatile than Occidental Petroleum 66. It trades about 0.01 of its total potential returns per unit of risk. Occidental Petroleum 66 is currently generating about 0.39 per unit of volatility. If you would invest 10,304 in Occidental Petroleum 66 on September 5, 2024 and sell it today you would earn a total of 499.00 from holding Occidental Petroleum 66 or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Sonida Senior Living vs. Occidental Petroleum 66
Performance |
| Timeline |
| Sonida Senior Living |
| Occidental Petroleum |
Sonida Senior and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Occidental
The main advantage of trading using opposite Sonida Senior and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
| Occidental vs. The Travelers Companies | Occidental vs. GE Aerospace | Occidental vs. Walmart | Occidental vs. Pfizer Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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