Correlation Between Omega Healthcare and BrightView Holdings
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and BrightView Holdings 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 BrightView Holdings 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 BrightView Holdings, you can compare the effects of market volatilities on Omega Healthcare and BrightView Holdings 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 BrightView Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and BrightView Holdings.
Diversification Opportunities for Omega Healthcare and BrightView Holdings
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Omega and BrightView is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and BrightView Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightView Holdings 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 BrightView Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightView Holdings has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and BrightView Holdings go up and down completely randomly.
Pair Corralation between Omega Healthcare and BrightView Holdings
Considering the 90-day investment horizon Omega Healthcare Investors is expected to under-perform the BrightView Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Omega Healthcare Investors is 1.84 times less risky than BrightView Holdings. The stock trades about -0.09 of its potential returns per unit of risk. The BrightView Holdings is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,150 in BrightView Holdings on January 24, 2024 and sell it today you would lose (30.00) from holding BrightView Holdings or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omega Healthcare Investors vs. BrightView Holdings
Performance |
| Timeline |
| Omega Healthcare Inv |
| BrightView Holdings |
Omega Healthcare and BrightView Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and BrightView Holdings
The main advantage of trading using opposite Omega Healthcare and BrightView Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, BrightView Holdings 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 BrightView Holdings will offset losses from the drop in BrightView Holdings' long position.| Omega Healthcare vs. LTC Properties | Omega Healthcare vs. Healthpeak Properties | Omega Healthcare vs. Global Medical REIT | Omega Healthcare vs. Sabra Healthcare REIT |
| BrightView Holdings vs. Maximus | BrightView Holdings vs. CBIZ Inc | BrightView Holdings vs. First Advantage Corp | BrightView Holdings vs. Cass Information Systems |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |