Correlation Between United Express and Omni-Lite Industries
Can any of the company-specific risk be diversified away by investing in both United Express and Omni-Lite Industries 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 United Express and Omni-Lite Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Express and Omni Lite Industries Canada, you can compare the effects of market volatilities on United Express and Omni-Lite Industries 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 United Express with a short position of Omni-Lite Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Express and Omni-Lite Industries.
Diversification Opportunities for United Express and Omni-Lite Industries
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between United and Omni-Lite is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding United Express and Omni Lite Industries Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Lite Industries and United Express 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 United Express are associated (or correlated) with Omni-Lite Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Lite Industries has no effect on the direction of United Express i.e., United Express and Omni-Lite Industries go up and down completely randomly.
Pair Corralation between United Express and Omni-Lite Industries
Given the investment horizon of 90 days United Express is expected to under-perform the Omni-Lite Industries. In addition to that, United Express is 1.65 times more volatile than Omni Lite Industries Canada. It trades about -0.1 of its total potential returns per unit of risk. Omni Lite Industries Canada is currently generating about -0.08 per unit of volatility. If you would invest 131.00 in Omni Lite Industries Canada on October 9, 2025 and sell it today you would lose (26.00) from holding Omni Lite Industries Canada or give up 19.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
United Express vs. Omni Lite Industries Canada
Performance |
| Timeline |
| United Express |
| Omni Lite Industries |
United Express and Omni-Lite Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Express and Omni-Lite Industries
The main advantage of trading using opposite United Express and Omni-Lite Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Express position performs unexpectedly, Omni-Lite Industries 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 Omni-Lite Industries will offset losses from the drop in Omni-Lite Industries' long position.| United Express vs. Cavitation Techs | United Express vs. Next10 Inc | United Express vs. FBR Limited | United Express vs. IBC Advanced Alloys |
| Omni-Lite Industries vs. Timminco Limited | Omni-Lite Industries vs. IBC Advanced Alloys | Omni-Lite Industries vs. United Express | Omni-Lite Industries vs. Moro Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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