Correlation Between Omega Healthcare and Blackstone Loan

Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Blackstone Loan 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 Omega Healthcare and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Omega Healthcare Investors and Blackstone Loan Financing, you can compare the effects of market volatilities on Omega Healthcare and Blackstone Loan 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 Omega Healthcare with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Blackstone Loan.

Diversification Opportunities for Omega Healthcare and Blackstone Loan

-0.67

Correlation Coefficient

Omega Healthcare  Blackstone Loan

Excellent diversification

The 3 months correlation between Omega and Blackstone is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing and Omega Healthcare 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 Omega Healthcare Investors are associated (or correlated) with Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Blackstone Loan go up and down completely randomly.

Pair Corralation between Omega Healthcare and Blackstone Loan

If you would invest  6,400  in Blackstone Loan Financing on October 22, 2024 and sell it today you would earn a total of  0.00  from holding Blackstone Loan Financing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	78.95%
Values	Daily Returns

Omega Healthcare Investors  vs.  Blackstone Loan Financing

Omega Healthcare Inv

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Omega Healthcare Investors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Blackstone Loan Financing

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Loan Financing are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Blackstone Loan unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Omega Healthcare and Blackstone Loan

The main advantage of trading using opposite Omega Healthcare and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan's long position.

The idea behind Omega Healthcare Investors and Blackstone Loan Financing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.