Correlation Between Opko Health and Genomma Lab
Can any of the company-specific risk be diversified away by investing in both Opko Health and Genomma Lab 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 Opko Health and Genomma Lab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opko Health and Genomma Lab Internacional, you can compare the effects of market volatilities on Opko Health and Genomma Lab 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 Opko Health with a short position of Genomma Lab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opko Health and Genomma Lab.
Diversification Opportunities for Opko Health and Genomma Lab
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Opko and Genomma is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Opko Health and Genomma Lab Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomma Lab Internacional and Opko Health 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 Opko Health are associated (or correlated) with Genomma Lab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomma Lab Internacional has no effect on the direction of Opko Health i.e., Opko Health and Genomma Lab go up and down completely randomly.
Pair Corralation between Opko Health and Genomma Lab
Considering the 90-day investment horizon Opko Health is expected to generate 2.15 times more return on investment than Genomma Lab. However, Opko Health is 2.15 times more volatile than Genomma Lab Internacional. It trades about 0.41 of its potential returns per unit of risk. Genomma Lab Internacional is currently generating about -0.08 per unit of risk. If you would invest 87.00 in Opko Health on January 19, 2024 and sell it today you would earn a total of 38.00 from holding Opko Health or generate 43.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Opko Health vs. Genomma Lab Internacional
Performance |
| Timeline |
| Opko Health |
| Genomma Lab Internacional |
Opko Health and Genomma Lab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opko Health and Genomma Lab
The main advantage of trading using opposite Opko Health and Genomma Lab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opko Health position performs unexpectedly, Genomma Lab 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 Genomma Lab will offset losses from the drop in Genomma Lab's long position.| Opko Health vs. Twist Bioscience Corp | Opko Health vs. Guardant Health | Opko Health vs. DermTech | Opko Health vs. Agilent Technologies |
| Genomma Lab vs. Gruma SAB de | Genomma Lab vs. Alfa SAB de | Genomma Lab vs. Kimberly Clark de Mxico | Genomma Lab vs. Grupo Mxico SAB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |