Correlation Between Newfield Exploration and Opko Health
Can any of the company-specific risk be diversified away by investing in both Newfield Exploration and Opko Health 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 Newfield Exploration and Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newfield Exploration and Opko Health, you can compare the effects of market volatilities on Newfield Exploration and Opko Health 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 Newfield Exploration with a short position of Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newfield Exploration and Opko Health.
Diversification Opportunities for Newfield Exploration and Opko Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newfield and Opko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newfield Exploration and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health and Newfield Exploration 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 Newfield Exploration are associated (or correlated) with Opko Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opko Health has no effect on the direction of Newfield Exploration i.e., Newfield Exploration and Opko Health go up and down completely randomly.
Pair Corralation between Newfield Exploration and Opko Health
If you would invest 48,900 in Opko Health on January 26, 2024 and sell it today you would lose (1,030) from holding Opko Health or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Newfield Exploration vs. Opko Health
Performance |
| Timeline |
| Newfield Exploration |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Opko Health |
Newfield Exploration and Opko Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newfield Exploration and Opko Health
The main advantage of trading using opposite Newfield Exploration and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newfield Exploration position performs unexpectedly, Opko Health 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 Opko Health will offset losses from the drop in Opko Health's long position.| Newfield Exploration vs. Paysafe | Newfield Exploration vs. AmTrust Financial Services | Newfield Exploration vs. Valneva SE ADR | Newfield Exploration vs. Chiba Bank Ltd |
| Opko Health vs. Teva Pharmaceutical Industries | Opko Health vs. Tower Semiconductor | Opko Health vs. Nice | Opko Health vs. Kamada |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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