Correlation Between CSL and Omeros
Can any of the company-specific risk be diversified away by investing in both CSL and Omeros 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 CSL and Omeros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL Limited and Omeros, you can compare the effects of market volatilities on CSL and Omeros 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 CSL with a short position of Omeros. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Omeros.
Diversification Opportunities for CSL and Omeros
Average diversification
The 3 months correlation between CSL and Omeros is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CSL Limited and Omeros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omeros and CSL 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 CSL Limited are associated (or correlated) with Omeros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omeros has no effect on the direction of CSL i.e., CSL and Omeros go up and down completely randomly.
Pair Corralation between CSL and Omeros
Assuming the 90 days horizon CSL Limited is expected to generate 0.23 times more return on investment than Omeros. However, CSL Limited is 4.35 times less risky than Omeros. It trades about 0.07 of its potential returns per unit of risk. Omeros is currently generating about -0.12 per unit of risk. If you would invest 13,618 in CSL Limited on April 24, 2025 and sell it today you would earn a total of 870.00 from holding CSL Limited or generate 6.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
CSL Limited vs. Omeros
Performance |
Timeline |
CSL Limited |
Omeros |
CSL and Omeros Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSL and Omeros
The main advantage of trading using opposite CSL and Omeros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL position performs unexpectedly, Omeros 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 Omeros will offset losses from the drop in Omeros' long position.CSL vs. INSURANCE AUST GRP | CSL vs. International Consolidated Airlines | CSL vs. QBE Insurance Group | CSL vs. VIVA WINE GROUP |
Omeros vs. Erste Group Bank | Omeros vs. REVO INSURANCE SPA | Omeros vs. Virtu Financial | Omeros vs. Planet Fitness |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |