Correlation Between Omega Flex and Xebec Adsorption

Can any of the company-specific risk be diversified away by investing in both Omega Flex and Xebec Adsorption 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 Flex and Xebec Adsorption into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Omega Flex and Xebec Adsorption, you can compare the effects of market volatilities on Omega Flex and Xebec Adsorption 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 Flex with a short position of Xebec Adsorption. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Flex and Xebec Adsorption.

Diversification Opportunities for Omega Flex and Xebec Adsorption

0.0

Correlation Coefficient

Omega Flex  Xebec Adsorption

Pay attention - limited upside

The 3 months correlation between Omega and Xebec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omega Flex and Xebec Adsorption in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xebec Adsorption and Omega Flex 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 Flex are associated (or correlated) with Xebec Adsorption. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xebec Adsorption has no effect on the direction of Omega Flex i.e., Omega Flex and Xebec Adsorption go up and down completely randomly.

Pair Corralation between Omega Flex and Xebec Adsorption

If you would invest  0.00  in Xebec Adsorption on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Xebec Adsorption or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Omega Flex  vs.  Xebec Adsorption

Omega Flex

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Omega Flex are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Omega Flex is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Xebec Adsorption

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xebec Adsorption has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Xebec Adsorption is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Omega Flex and Xebec Adsorption

The main advantage of trading using opposite Omega Flex and Xebec Adsorption positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Flex position performs unexpectedly, Xebec Adsorption 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 Xebec Adsorption will offset losses from the drop in Xebec Adsorption's long position.

The idea behind Omega Flex and Xebec Adsorption 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.