Correlation Between Omega Healthcare and Treasury Wine
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Treasury Wine 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 Treasury Wine 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 Treasury Wine Estates, you can compare the effects of market volatilities on Omega Healthcare and Treasury Wine 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 Treasury Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Treasury Wine.
Diversification Opportunities for Omega Healthcare and Treasury Wine
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Omega and Treasury is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Treasury Wine Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasury Wine Estates 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 Treasury Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasury Wine Estates has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Treasury Wine go up and down completely randomly.
Pair Corralation between Omega Healthcare and Treasury Wine
Assuming the 90 days horizon Omega Healthcare Investors is expected to under-perform the Treasury Wine. In addition to that, Omega Healthcare is 1.07 times more volatile than Treasury Wine Estates. It trades about -0.17 of its total potential returns per unit of risk. Treasury Wine Estates is currently generating about -0.07 per unit of volatility. If you would invest 698.00 in Treasury Wine Estates on September 26, 2024 and sell it today you would lose (15.00) from holding Treasury Wine Estates or give up 2.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Omega Healthcare Investors vs. Treasury Wine Estates
Performance |
Timeline |
Omega Healthcare Inv |
Treasury Wine Estates |
Omega Healthcare and Treasury Wine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Omega Healthcare and Treasury Wine
The main advantage of trading using opposite Omega Healthcare and Treasury Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Treasury Wine 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 Treasury Wine will offset losses from the drop in Treasury Wine's long position.Omega Healthcare vs. Treasury Wine Estates | Omega Healthcare vs. GREENX METALS LTD | Omega Healthcare vs. Dairy Farm International | Omega Healthcare vs. Performance Food Group |
Treasury Wine vs. Constellation Brands | Treasury Wine vs. Brown Forman | Treasury Wine vs. Thai Beverage Public | Treasury Wine vs. Rmy Cointreau SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Equity Valuation Check real value of public entities based on technical and fundamental data |