Correlation Between Haoxi Health and Omnicom

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

By analyzing existing cross correlation between Haoxi Health Technology and Omnicom Group, you can compare the effects of market volatilities on Haoxi Health and Omnicom 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 Haoxi Health with a short position of Omnicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haoxi Health and Omnicom.

Diversification Opportunities for Haoxi Health and Omnicom

0.58

Correlation Coefficient

Haoxi Health  Omnicom

Very weak diversification

The 3 months correlation between Haoxi and Omnicom is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Haoxi Health Technology and Omnicom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnicom Group and Haoxi 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 Haoxi Health Technology are associated (or correlated) with Omnicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnicom Group has no effect on the direction of Haoxi Health i.e., Haoxi Health and Omnicom go up and down completely randomly.

Pair Corralation between Haoxi Health and Omnicom

Considering the 90-day investment horizon Haoxi Health Technology is expected to under-perform the Omnicom. In addition to that, Haoxi Health is 6.96 times more volatile than Omnicom Group. It trades about -0.1 of its total potential returns per unit of risk. Omnicom Group is currently generating about -0.06 per unit of volatility. If you would invest  8,512  in Omnicom Group on December 28, 2024 and sell it today you would lose (449.00) from holding Omnicom Group or give up 5.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Haoxi Health Technology  vs.  Omnicom Group

Haoxi Health Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haoxi Health Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Omnicom Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Omnicom Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Omnicom is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Haoxi Health and Omnicom

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

The idea behind Haoxi Health Technology and Omnicom Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.