Correlation Between Epitomee Medical and Opko Health
Can any of the company-specific risk be diversified away by investing in both Epitomee Medical 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 Epitomee Medical and Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epitomee Medical and Opko Health, you can compare the effects of market volatilities on Epitomee Medical 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 Epitomee Medical with a short position of Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epitomee Medical and Opko Health.
Diversification Opportunities for Epitomee Medical and Opko Health
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Epitomee and Opko is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Epitomee Medical and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health and Epitomee Medical 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 Epitomee Medical 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 Epitomee Medical i.e., Epitomee Medical and Opko Health go up and down completely randomly.
Pair Corralation between Epitomee Medical and Opko Health
Assuming the 90 days trading horizon Epitomee Medical is expected to under-perform the Opko Health. In addition to that, Epitomee Medical is 1.16 times more volatile than Opko Health. It trades about -0.36 of its total potential returns per unit of risk. Opko Health is currently generating about -0.16 per unit of volatility. If you would invest 55,920 in Opko Health on October 24, 2024 and sell it today you would lose (3,120) from holding Opko Health or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epitomee Medical vs. Opko Health
Performance |
| Timeline |
| Epitomee Medical |
| Opko Health |
Epitomee Medical and Opko Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epitomee Medical and Opko Health
The main advantage of trading using opposite Epitomee Medical and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epitomee Medical 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.| Epitomee Medical vs. Azorim Investment Development | Epitomee Medical vs. Isras Investment | Epitomee Medical vs. Elron Electronic Industries | Epitomee Medical 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |