Opko Health Stock Volatility

OPK Stock  USD 1.07  0.06  5.94%   
Opko Health maintains Sharpe Ratio (i.e., Efficiency) of -0.0551, which implies the firm had a -0.0551% return per unit of risk over the last 3 months. Opko Health exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Opko Health's Coefficient Of Variation of (1,485), risk adjusted performance of (0.03), and Variance of 34.52 to confirm the risk estimate we provide. Key indicators related to Opko Health's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Opko Health Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Opko daily returns, and it is calculated using variance and standard deviation. We also use Opko's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Opko Health volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Opko Health can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Opko Health at lower prices. For example, an investor can purchase Opko stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Opko Health's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Opko Stock

  0.62MDXG MiMedx Group Sell-off TrendPairCorr

Moving against Opko Stock

  0.73MRK Merck Company Fiscal Quarter End 31st of March 2024 PairCorr
  0.64MDWD Mediwound Financial Report 4th of June 2024 PairCorr
  0.56DNTH Dianthus Therapeutics Symbol ChangePairCorr
  0.5MGNX MacroGenics Financial Report 14th of May 2024 PairCorr
  0.46EQ Equillium Financial Report 9th of May 2024 PairCorr

Opko Health Market Sensitivity And Downside Risk

Opko Health's beta coefficient measures the volatility of Opko stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Opko stock's returns against your selected market. In other words, Opko Health's beta of 1.72 provides an investor with an approximation of how much risk Opko Health stock can potentially add to one of your existing portfolios. Opko Health exhibits very low volatility with skewness of -4.41 and kurtosis of 29.95. Opko Health is a potential penny stock. Although Opko Health may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Opko Health. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Opko instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Opko Health Demand Trend
Check current 90 days Opko Health correlation with market (NYSE Composite)

Opko Beta

    
  1.72  
Opko standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  6.08  
It is essential to understand the difference between upside risk (as represented by Opko Health's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Opko Health's daily returns or price. Since the actual investment returns on holding a position in opko stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Opko Health.

Using Opko Put Option to Manage Risk

Put options written on Opko Health grant holders of the option the right to sell a specified amount of Opko Health at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Opko Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Opko Health's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Opko Health will be realized, the loss incurred will be offset by the profits made with the option trade.

Opko Health's PUT expiring on 2024-04-19

   Profit   
       Opko Health Price At Expiration  

Current Opko Health Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $2.0-0.80860.469712024-04-190.65 - 1.30.9View
Put
2024-04-19 PUT at $1.5-0.55370.532142152024-04-190.15 - 0.60.55View
Put
2024-04-19 PUT at $1.0-0.32461.705415822024-04-190.0 - 0.10.05View
View All Opko Health Options

Opko Health Stock Volatility Analysis

Volatility refers to the frequency at which Opko Health stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Opko Health's price changes. Investors will then calculate the volatility of Opko Health's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Opko Health's volatility:

Historical Volatility

This type of stock volatility measures Opko Health's fluctuations based on previous trends. It's commonly used to predict Opko Health's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Opko Health's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Opko Health's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Opko Health Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Opko Health Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.7154 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Opko Health will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Opko Health or Biotechnology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Opko Health's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Opko stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Opko Health has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Opko Health's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how opko stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an Opko Health Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Opko Health Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Opko Health is -1813.86. The daily returns are distributed with a variance of 37.0 and standard deviation of 6.08. The mean deviation of Opko Health is currently at 3.19. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.62
β
Beta against NYSE Composite1.72
σ
Overall volatility
6.08
Ir
Information ratio -0.09

Opko Health Stock Return Volatility

Opko Health historical daily return volatility represents how much of Opko Health stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 6.0832% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Opko Health Volatility

Volatility is a rate at which the price of Opko Health or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Opko Health may increase or decrease. In other words, similar to Opko's beta indicator, it measures the risk of Opko Health and helps estimate the fluctuations that may happen in a short period of time. So if prices of Opko Health fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2024
Selling And Marketing Expenses587.7 K522.4 K
Opko Health's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Opko Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Opko Health's price varies over time.

3 ways to utilize Opko Health's volatility to invest better

Higher Opko Health's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Opko Health stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Opko Health stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Opko Health investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Opko Health's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Opko Health's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Opko Health Investment Opportunity

Opko Health has a volatility of 6.08 and is 10.67 times more volatile than NYSE Composite. 53 percent of all equities and portfolios are less risky than Opko Health. You can use Opko Health to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Opko Health to be traded at $1.3375 in 90 days.

Average diversification

The correlation between Opko Health and NYA is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Opko Health and NYA in the same portfolio, assuming nothing else is changed.

Opko Health Additional Risk Indicators

The analysis of Opko Health's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Opko Health's investment and either accepting that risk or mitigating it. Along with some common measures of Opko Health stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Opko Health Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Opko Health as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Opko Health's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Opko Health's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Opko Health.
When determining whether Opko Health is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Opko Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Opko Health Stock. Highlighted below are key reports to facilitate an investment decision about Opko Health Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Opko Health. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
For more information on how to buy Opko Stock please use our How to buy in Opko Stock guide.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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When running Opko Health's price analysis, check to measure Opko Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Opko Health is operating at the current time. Most of Opko Health's value examination focuses on studying past and present price action to predict the probability of Opko Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Opko Health's price. Additionally, you may evaluate how the addition of Opko Health to your portfolios can decrease your overall portfolio volatility.
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Is Opko Health's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Opko Health. If investors know Opko will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Opko Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.191
Earnings Share
(0.25)
Revenue Per Share
1.149
Quarterly Revenue Growth
(0.02)
Return On Assets
(0.05)
The market value of Opko Health is measured differently than its book value, which is the value of Opko that is recorded on the company's balance sheet. Investors also form their own opinion of Opko Health's value that differs from its market value or its book value, called intrinsic value, which is Opko Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Opko Health's market value can be influenced by many factors that don't directly affect Opko Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Opko Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Opko Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Opko Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.