Correlation Between Omega Healthcare and Ansys

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Ansys 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 Ansys 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 Ansys Inc, you can compare the effects of market volatilities on Omega Healthcare and Ansys 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 Ansys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Ansys.

Diversification Opportunities for Omega Healthcare and Ansys

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Omega and Ansys is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors and Ansys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ansys Inc 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 Ansys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ansys Inc has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Ansys go up and down completely randomly.

Pair Corralation between Omega Healthcare and Ansys

Considering the 90-day investment horizon Omega Healthcare Investors is expected to under-perform the Ansys. But the stock apears to be less risky and, when comparing its historical volatility, Omega Healthcare Investors is 1.45 times less risky than Ansys. The stock trades about -0.03 of its potential returns per unit of risk. The Ansys Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  21,648  in Ansys Inc on August 28, 2022 and sell it today you would earn a total of  2,996  from holding Ansys Inc or generate 13.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Omega Healthcare Investors  vs.  Ansys Inc

 Performance (%) 
       Timeline  
Omega Healthcare Inv 
Omega Performance
0 of 100
Over the last 90 days Omega Healthcare Investors has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Omega Healthcare is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Omega Price Channel

Ansys Inc 
Ansys Performance
0 of 100
Over the last 90 days Ansys Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ansys is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Ansys Price Channel

Omega Healthcare and Ansys Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Omega Healthcare and Ansys

The main advantage of trading using opposite Omega Healthcare and Ansys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Ansys 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 Ansys will offset losses from the drop in Ansys' long position.
Omega Healthcare vs. Hashicorp Inc Cl
Omega Healthcare vs. ABM Industries
Omega Healthcare vs. Apartment Investment And
Omega Healthcare vs. American Tower Corp
The idea behind Omega Healthcare Investors and Ansys Inc 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.
Ansys vs. Harsco Corp
Ansys vs. Arch Capital Grp
Ansys vs. Aecom Technology Corp
Ansys vs. Accenture Plc
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go