Correlation Between Amot Investments and Opko Health
Can any of the company-specific risk be diversified away by investing in both Amot Investments 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 Amot Investments and Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Opko Health, you can compare the effects of market volatilities on Amot Investments 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 Amot Investments with a short position of Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Opko Health.
Diversification Opportunities for Amot Investments and Opko Health
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amot and Opko is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health and Amot Investments 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 Amot Investments 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 Amot Investments i.e., Amot Investments and Opko Health go up and down completely randomly.
Pair Corralation between Amot Investments and Opko Health
Assuming the 90 days trading horizon Amot Investments is expected to generate 2.6 times less return on investment than Opko Health. But when comparing it to its historical volatility, Amot Investments is 1.74 times less risky than Opko Health. It trades about 0.06 of its potential returns per unit of risk. Opko Health is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 34,480 in Opko Health on November 3, 2024 and sell it today you would earn a total of 20,040 from holding Opko Health or generate 58.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Opko Health
Performance |
| Timeline |
| Amot Investments |
| Opko Health |
Amot Investments and Opko Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Opko Health
The main advantage of trading using opposite Amot Investments and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments 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.| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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