Correlation Between OBI Pharma and Optimax Technology
Can any of the company-specific risk be diversified away by investing in both OBI Pharma and Optimax Technology 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 OBI Pharma and Optimax Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OBI Pharma and Optimax Technology Corp, you can compare the effects of market volatilities on OBI Pharma and Optimax Technology 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 OBI Pharma with a short position of Optimax Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBI Pharma and Optimax Technology.
Diversification Opportunities for OBI Pharma and Optimax Technology
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OBI and Optimax is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding OBI Pharma and Optimax Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimax Technology Corp and OBI Pharma 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 OBI Pharma are associated (or correlated) with Optimax Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimax Technology Corp has no effect on the direction of OBI Pharma i.e., OBI Pharma and Optimax Technology go up and down completely randomly.
Pair Corralation between OBI Pharma and Optimax Technology
Assuming the 90 days trading horizon OBI Pharma is expected to under-perform the Optimax Technology. But the stock apears to be less risky and, when comparing its historical volatility, OBI Pharma is 1.37 times less risky than Optimax Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Optimax Technology Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,850 in Optimax Technology Corp on August 30, 2024 and sell it today you would earn a total of 1,310 from holding Optimax Technology Corp or generate 70.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBI Pharma vs. Optimax Technology Corp
Performance |
| Timeline |
| OBI Pharma |
| Optimax Technology Corp |
OBI Pharma and Optimax Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBI Pharma and Optimax Technology
The main advantage of trading using opposite OBI Pharma and Optimax Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBI Pharma position performs unexpectedly, Optimax Technology 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 Optimax Technology will offset losses from the drop in Optimax Technology's long position.| OBI Pharma vs. TaiMed Biologics | OBI Pharma vs. PharmaEngine | OBI Pharma vs. Medigen Biotechnology | OBI Pharma vs. TTY Biopharm Co |
| Optimax Technology vs. Asia Optical Co | Optimax Technology vs. Novatek Microelectronics Corp | Optimax Technology vs. AU Optronics | Optimax Technology vs. HannsTouch Solution |
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.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |