Correlation Between Pro Medicus and Omnicell
Can any of the company-specific risk be diversified away by investing in both Pro Medicus and Omnicell 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 Pro Medicus and Omnicell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Medicus Limited and Omnicell, you can compare the effects of market volatilities on Pro Medicus and Omnicell 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 Pro Medicus with a short position of Omnicell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Medicus and Omnicell.
Diversification Opportunities for Pro Medicus and Omnicell
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pro and Omnicell is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Pro Medicus Limited and Omnicell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnicell and Pro Medicus 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 Pro Medicus Limited are associated (or correlated) with Omnicell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnicell has no effect on the direction of Pro Medicus i.e., Pro Medicus and Omnicell go up and down completely randomly.
Pair Corralation between Pro Medicus and Omnicell
Assuming the 90 days horizon Pro Medicus Limited is expected to generate 0.73 times more return on investment than Omnicell. However, Pro Medicus Limited is 1.37 times less risky than Omnicell. It trades about 0.07 of its potential returns per unit of risk. Omnicell is currently generating about -0.07 per unit of risk. If you would invest 3,454 in Pro Medicus Limited on January 18, 2024 and sell it today you would earn a total of 3,164 from holding Pro Medicus Limited or generate 91.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 92.32% |
Values | Daily Returns |
Pro Medicus Limited vs. Omnicell
Performance |
Timeline |
Pro Medicus Limited |
Omnicell |
Pro Medicus and Omnicell Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pro Medicus and Omnicell
The main advantage of trading using opposite Pro Medicus and Omnicell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Medicus position performs unexpectedly, Omnicell 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 Omnicell will offset losses from the drop in Omnicell's long position.Pro Medicus vs. GE HealthCare Technologies | Pro Medicus vs. Veeva Systems Class | Pro Medicus vs. Solventum Corp | Pro Medicus vs. HealthEquity |
Omnicell vs. National Research Corp | Omnicell vs. Forian Inc | Omnicell vs. Aclarion | Omnicell vs. Mangoceuticals Common Stock |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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