Omega Healthcare Investors Stock Volatility
| OHI Stock | USD 37.50 0.50 1.32% |
Omega Healthcare is very steady at the moment. Omega Healthcare Inv maintains Sharpe Ratio (i.e., Efficiency) of close to zero, which implies the firm had a close to zero % return per unit of risk over the last 3 months. We have found twenty-two technical indicators for Omega Healthcare Inv, which you can use to evaluate the volatility of the company. Please check Omega Healthcare's Variance of 2.55, risk adjusted performance of 0.0043, and Coefficient Of Variation of (1,719,300) to confirm if the risk estimate we provide is consistent with the expected return of 0.0138%. Key indicators related to Omega Healthcare's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Omega Healthcare Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Omega daily returns, and it is calculated using variance and standard deviation. We also use Omega's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Omega Healthcare volatility.
Omega |
ESG Sustainability
While most ESG disclosures are voluntary, Omega Healthcare's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Omega Healthcare's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Omega Healthcare at lower prices. For example, an investor can purchase Omega stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Omega Healthcare Market Sensitivity And Downside Risk
Omega Healthcare's beta coefficient measures the volatility of Omega stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Omega stock's returns against your selected market. In other words, Omega Healthcare's beta of 0.42 provides an investor with an approximation of how much risk Omega Healthcare stock can potentially add to one of your existing portfolios. Omega Healthcare Investors exhibits very low volatility with skewness of -0.36 and kurtosis of 0.19. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Omega Healthcare's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Omega Healthcare's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Omega Healthcare Inv Demand TrendCheck current 90 days Omega Healthcare correlation with market (Dow Jones Industrial)Omega Beta |
Omega standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.62 |
It is essential to understand the difference between upside risk (as represented by Omega Healthcare's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Omega Healthcare's daily returns or price. Since the actual investment returns on holding a position in omega stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Omega Healthcare.
Using Omega Put Option to Manage Risk
Put options written on Omega Healthcare grant holders of the option the right to sell a specified amount of Omega Healthcare at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Omega Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Omega Healthcare's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Omega Healthcare will be realized, the loss incurred will be offset by the profits made with the option trade.
Omega Healthcare's PUT expiring on 2025-06-20
Profit |
| Omega Healthcare Price At Expiration |
Current Omega Healthcare Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | OHI250620P00020000 | -0.036883 | 0.005511 | 1 | 2025-06-20 | 0.0 - 0.5 | 0.0 | View |
Put | OHI250620P00025000 | -0.033573 | 0.008593 | 12 | 2025-06-20 | 0.0 - 0.25 | 0.0 | View |
Put | OHI250620P00030000 | -0.082816 | 0.024677 | 97 | 2025-06-20 | 0.15 - 0.35 | 0.0 | View |
Put | OHI250620P00033000 | -0.167564 | 0.050058 | 2567 | 2025-06-20 | 0.4 - 0.55 | 0.0 | View |
Put | OHI250620P00034000 | -0.221397 | 0.061882 | 155 | 2025-06-20 | 0.6 - 0.7 | 0.0 | View |
Put | OHI250620P00035000 | -0.289423 | 0.073407 | 86 | 2025-06-20 | 0.85 - 0.95 | 0.0 | View |
Put | OHI250620P00036000 | -0.367576 | 0.084472 | 176 | 2025-06-20 | 1.15 - 1.25 | 0.0 | View |
Put | OHI250620P00037000 | -0.45663 | 0.089145 | 88 | 2025-06-20 | 1.6 - 1.7 | 0.0 | View |
Put | OHI250620P00038000 | -0.55017 | 0.09261 | 261 | 2025-06-20 | 2.05 - 2.2 | 0.0 | View |
Put | OHI250620P00039000 | -0.636603 | 0.086623 | 28 | 2025-06-20 | 2.7 - 2.85 | 0.0 | View |
Put | OHI250620P00040000 | -0.713515 | 0.077386 | 63 | 2025-06-20 | 3.4 - 3.6 | 0.0 | View |
Omega Healthcare Inv Stock Volatility Analysis
Volatility refers to the frequency at which Omega Healthcare stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Omega Healthcare's price changes. Investors will then calculate the volatility of Omega Healthcare's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Omega Healthcare's volatility:
Historical Volatility
This type of stock volatility measures Omega Healthcare's fluctuations based on previous trends. It's commonly used to predict Omega Healthcare's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Omega Healthcare's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Omega Healthcare's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Omega Healthcare Inv Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Omega Healthcare Projected Return Density Against Market
Considering the 90-day investment horizon Omega Healthcare has a beta of 0.4194 . This indicates as returns on the market go up, Omega Healthcare average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Omega Healthcare Investors will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Omega Healthcare or Diversified REITs sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Omega Healthcare's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Omega stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Omega Healthcare Investors has an alpha of 0.0052, implying that it can generate a 0.0052 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Omega Healthcare Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Omega Healthcare Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Omega Healthcare is 11729.0. The daily returns are distributed with a variance of 2.62 and standard deviation of 1.62. The mean deviation of Omega Healthcare Investors is currently at 1.27. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.9
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 0.42 | |
σ | Overall volatility | 1.62 | |
Ir | Information ratio | 0.02 |
Omega Healthcare Stock Return Volatility
Omega Healthcare historical daily return volatility represents how much of Omega Healthcare stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.6174% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8567% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Omega Healthcare Volatility
Volatility is a rate at which the price of Omega Healthcare or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Omega Healthcare may increase or decrease. In other words, similar to Omega's beta indicator, it measures the risk of Omega Healthcare and helps estimate the fluctuations that may happen in a short period of time. So if prices of Omega Healthcare fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 2.5 M | 2.4 M | |
| Market Cap | 5.4 B | 5.7 B |
Omega Healthcare's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Omega Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Omega Healthcare's price varies over time.
3 ways to utilize Omega Healthcare's volatility to invest better
Higher Omega Healthcare's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Omega Healthcare Inv stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Omega Healthcare Inv stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Omega Healthcare Inv investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Omega Healthcare's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Omega Healthcare's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Omega Healthcare Investment Opportunity
Omega Healthcare Investors has a volatility of 1.62 and is 1.88 times more volatile than Dow Jones Industrial. 14 percent of all equities and portfolios are less risky than Omega Healthcare. You can use Omega Healthcare Investors to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Omega Healthcare to be traded at $36.38 in 90 days.Modest diversification
The correlation between Omega Healthcare Investors and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and DJI in the same portfolio, assuming nothing else is changed.
Omega Healthcare Additional Risk Indicators
The analysis of Omega Healthcare's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Omega Healthcare's investment and either accepting that risk or mitigating it. Along with some common measures of Omega Healthcare stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0043 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (1,719,300) | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.55 | |||
| Information Ratio | 0.0165 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Omega Healthcare Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Omega Healthcare as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Omega Healthcare's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Omega Healthcare's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Omega Healthcare Investors.
Complementary Tools for Omega Stock analysis
When running Omega Healthcare's price analysis, check to measure Omega Healthcare's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Omega Healthcare is operating at the current time. Most of Omega Healthcare's value examination focuses on studying past and present price action to predict the probability of Omega Healthcare's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Omega Healthcare's price. Additionally, you may evaluate how the addition of Omega Healthcare to your portfolios can decrease your overall portfolio volatility.
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |