Correlation Between Kamada and Opko Health
Can any of the company-specific risk be diversified away by investing in both Kamada 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 Kamada and Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Opko Health, you can compare the effects of market volatilities on Kamada 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 Kamada with a short position of Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Opko Health.
Diversification Opportunities for Kamada and Opko Health
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kamada and Opko is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health and Kamada 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 Kamada 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 Kamada i.e., Kamada and Opko Health go up and down completely randomly.
Pair Corralation between Kamada and Opko Health
Assuming the 90 days trading horizon Kamada is expected to generate 1.27 times less return on investment than Opko Health. But when comparing it to its historical volatility, Kamada is 2.36 times less risky than Opko Health. It trades about 0.08 of its potential returns per unit of risk. Opko Health is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 53,580 in Opko Health on August 29, 2024 and sell it today you would earn a total of 1,130 from holding Opko Health or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Kamada vs. Opko Health
Performance |
| Timeline |
| Kamada |
| Opko Health |
Kamada and Opko Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Opko Health
The main advantage of trading using opposite Kamada and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada 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.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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