Correlation Between Electreon Wireless and Opko Health
Can any of the company-specific risk be diversified away by investing in both Electreon Wireless 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 Electreon Wireless and Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electreon Wireless and Opko Health, you can compare the effects of market volatilities on Electreon Wireless 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 Electreon Wireless with a short position of Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electreon Wireless and Opko Health.
Diversification Opportunities for Electreon Wireless and Opko Health
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Electreon and Opko is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Electreon Wireless and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health and Electreon Wireless 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 Electreon Wireless 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 Electreon Wireless i.e., Electreon Wireless and Opko Health go up and down completely randomly.
Pair Corralation between Electreon Wireless and Opko Health
Assuming the 90 days trading horizon Electreon Wireless is expected to generate 1.64 times more return on investment than Opko Health. However, Electreon Wireless is 1.64 times more volatile than Opko Health. It trades about 0.44 of its potential returns per unit of risk. Opko Health is currently generating about -0.07 per unit of risk. If you would invest 1,805,000 in Electreon Wireless on November 3, 2024 and sell it today you would earn a total of 369,000 from holding Electreon Wireless or generate 20.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electreon Wireless vs. Opko Health
Performance |
| Timeline |
| Electreon Wireless |
| Opko Health |
Electreon Wireless and Opko Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electreon Wireless and Opko Health
The main advantage of trading using opposite Electreon Wireless and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electreon Wireless 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.| Electreon Wireless vs. Augwind Energy Tech | Electreon Wireless vs. Enlight Renewable Energy | Electreon Wireless vs. Maytronics | Electreon Wireless vs. Fattal 1998 Holdings |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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