Correlation Between 00108WAF7 and Omega Healthcare
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By analyzing existing cross correlation between AEP TEX INC and Omega Healthcare Investors, you can compare the effects of market volatilities on 00108WAF7 and Omega Healthcare 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 00108WAF7 with a short position of Omega Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Omega Healthcare.
Diversification Opportunities for 00108WAF7 and Omega Healthcare
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 00108WAF7 and Omega is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and Omega Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Healthcare Inv and 00108WAF7 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 AEP TEX INC are associated (or correlated) with Omega Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Healthcare Inv has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and Omega Healthcare go up and down completely randomly.
Pair Corralation between 00108WAF7 and Omega Healthcare
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 101.89 times more return on investment than Omega Healthcare. However, 00108WAF7 is 101.89 times more volatile than Omega Healthcare Investors. It trades about 0.12 of its potential returns per unit of risk. Omega Healthcare Investors is currently generating about 0.08 per unit of risk. If you would invest 8,736 in AEP TEX INC on August 28, 2024 and sell it today you would lose (1,647) from holding AEP TEX INC or give up 18.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.03% |
| Values | Daily Returns |
AEP TEX INC vs. Omega Healthcare Investors
Performance |
| Timeline |
| AEP TEX INC |
| Omega Healthcare Inv |
00108WAF7 and Omega Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and Omega Healthcare
The main advantage of trading using opposite 00108WAF7 and Omega Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, Omega Healthcare 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 Omega Healthcare will offset losses from the drop in Omega Healthcare's long position.| 00108WAF7 vs. Pentair PLC | 00108WAF7 vs. Torm PLC Class | 00108WAF7 vs. Ryanair Holdings PLC | 00108WAF7 vs. EvoAir Holdings |
| Omega Healthcare vs. LTC Properties | Omega Healthcare vs. Healthpeak Properties | Omega Healthcare vs. Global Medical REIT | Omega Healthcare vs. Sabra Healthcare REIT |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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