Correlation Between Omnicom and Boston Omaha

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Can any of the company-specific risk be diversified away by investing in both Omnicom and Boston Omaha 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 Omnicom and Boston Omaha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omnicom Group and Boston Omaha, you can compare the effects of market volatilities on Omnicom and Boston Omaha 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 Omnicom with a short position of Boston Omaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omnicom and Boston Omaha.

Diversification Opportunities for Omnicom and Boston Omaha

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Omnicom and Boston is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Omnicom Group and Boston Omaha Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha and Omnicom 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 Omnicom Group are associated (or correlated) with Boston Omaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Omaha has no effect on the direction of Omnicom i.e., Omnicom and Boston Omaha go up and down completely randomly.

Pair Corralation between Omnicom and Boston Omaha

If you would invest  2,541  in Boston Omaha on March 28, 2022 and sell it today you would earn a total of  0.00  from holding Boston Omaha or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy2.38%
ValuesDaily Returns

Omnicom Group  vs.  Boston Omaha Corp.

 Performance (%) 
      Timeline 
Omnicom Group 
Omnicom Performance
0 of 100
Over the last 90 days Omnicom Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0433
Payout Ratio
0.44
Last Split Factor
2:1
Forward Annual Dividend Rate
2.8
Dividend Date
2022-07-08
Ex Dividend Date
2022-06-09
Last Split Date
2007-06-26

Omnicom Price Channel

Boston Omaha 
Boston Performance
0 of 100
Over the last 90 days Boston Omaha has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Boston Omaha is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Omnicom and Boston Omaha Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Omnicom and Boston Omaha

The main advantage of trading using opposite Omnicom and Boston Omaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omnicom position performs unexpectedly, Boston Omaha 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 Boston Omaha will offset losses from the drop in Boston Omaha's long position.
The idea behind Omnicom Group and Boston Omaha 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.

Boston Omaha

Pair trading matchups for Boston Omaha

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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