Correlation Between Veeva Systems and Omnicell
Can any of the company-specific risk be diversified away by investing in both Veeva Systems and Omnicell 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 Veeva Systems and Omnicell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veeva Systems Class and Omnicell, you can compare the effects of market volatilities on Veeva Systems and Omnicell 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 Veeva Systems with a short position of Omnicell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veeva Systems and Omnicell.
Diversification Opportunities for Veeva Systems and Omnicell
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Veeva and Omnicell is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Veeva Systems Class and Omnicell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnicell and Veeva Systems 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 Veeva Systems Class are associated (or correlated) with Omnicell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnicell has no effect on the direction of Veeva Systems i.e., Veeva Systems and Omnicell go up and down completely randomly.
Pair Corralation between Veeva Systems and Omnicell
Given the investment horizon of 90 days Veeva Systems is expected to generate 2.34 times less return on investment than Omnicell. But when comparing it to its historical volatility, Veeva Systems Class is 2.7 times less risky than Omnicell. It trades about 0.11 of its potential returns per unit of risk. Omnicell is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,053 in Omnicell on September 3, 2024 and sell it today you would earn a total of 1,708 from holding Omnicell or generate 55.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veeva Systems Class vs. Omnicell
Performance |
| Timeline |
| Veeva Systems Class |
| Omnicell |
Veeva Systems and Omnicell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veeva Systems and Omnicell
The main advantage of trading using opposite Veeva Systems and Omnicell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veeva Systems position performs unexpectedly, Omnicell 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 Omnicell will offset losses from the drop in Omnicell's long position.| Veeva Systems vs. Progyny | Veeva Systems vs. Teladoc | Veeva Systems vs. Goodrx Holdings | Veeva Systems vs. 10X Genomics |
| Omnicell vs. HealthStream | Omnicell vs. National Research Corp | Omnicell vs. Forian Inc | Omnicell vs. Definitive Healthcare Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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