Correlation Between Elbit Imaging and Opko Health
Can any of the company-specific risk be diversified away by investing in both Elbit Imaging 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 Elbit Imaging and Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Imaging and Opko Health, you can compare the effects of market volatilities on Elbit Imaging 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 Elbit Imaging with a short position of Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Imaging and Opko Health.
Diversification Opportunities for Elbit Imaging and Opko Health
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elbit and Opko is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health and Elbit Imaging 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 Elbit Imaging 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 Elbit Imaging i.e., Elbit Imaging and Opko Health go up and down completely randomly.
Pair Corralation between Elbit Imaging and Opko Health
Assuming the 90 days trading horizon Elbit Imaging is expected to generate 0.28 times more return on investment than Opko Health. However, Elbit Imaging is 3.56 times less risky than Opko Health. It trades about 0.41 of its potential returns per unit of risk. Opko Health is currently generating about 0.03 per unit of risk. If you would invest 47,400 in Elbit Imaging on September 3, 2024 and sell it today you would earn a total of 4,500 from holding Elbit Imaging or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elbit Imaging vs. Opko Health
Performance |
| Timeline |
| Elbit Imaging |
| Opko Health |
Elbit Imaging and Opko Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Imaging and Opko Health
The main advantage of trading using opposite Elbit Imaging and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging 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.| Elbit Imaging vs. Multi Retail Group | Elbit Imaging vs. Scope Metals Group | Elbit Imaging vs. Global Knafaim Leasing | Elbit Imaging vs. Harel Insurance Investments |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |