Correlation Between Intevac and Omega Flex

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

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

Diversification Opportunities for Intevac and Omega Flex

-0.64

Correlation Coefficient

Intevac  Omega Flex

Excellent diversification

The 3 months correlation between Intevac and Omega is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and Omega Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Flex and Intevac 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 Intevac are associated (or correlated) with Omega Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Flex has no effect on the direction of Intevac i.e., Intevac and Omega Flex go up and down completely randomly.

Pair Corralation between Intevac and Omega Flex

Given the investment horizon of 90 days Intevac is expected to generate 1.32 times more return on investment than Omega Flex. However, Intevac is 1.32 times more volatile than Omega Flex. It trades about 0.12 of its potential returns per unit of risk. Omega Flex is currently generating about -0.13 per unit of risk. If you would invest  335.00  in Intevac on December 28, 2024 and sell it today you would earn a total of  64.50  from holding Intevac or generate 19.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Intevac  vs.  Omega Flex

Intevac

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intevac are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Intevac exhibited solid returns over the last few months and may actually be approaching a breakup point.

Omega Flex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Omega Flex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Intevac and Omega Flex

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

The idea behind Intevac and Omega Flex 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.