Correlation Between Movano and OpGen
Can any of the company-specific risk be diversified away by investing in both Movano and OpGen 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 Movano and OpGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Movano Inc and OpGen Inc, you can compare the effects of market volatilities on Movano and OpGen 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 Movano with a short position of OpGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movano and OpGen.
Diversification Opportunities for Movano and OpGen
Weak diversification
The 3 months correlation between Movano and OpGen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Movano Inc and OpGen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpGen Inc and Movano 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 Movano Inc are associated (or correlated) with OpGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpGen Inc has no effect on the direction of Movano i.e., Movano and OpGen go up and down completely randomly.
Pair Corralation between Movano and OpGen
Given the investment horizon of 90 days Movano Inc is expected to under-perform the OpGen. But the stock apears to be less risky and, when comparing its historical volatility, Movano Inc is 2.46 times less risky than OpGen. The stock trades about -0.05 of its potential returns per unit of risk. The OpGen Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,602 in OpGen Inc on August 28, 2024 and sell it today you would lose (2,412) from holding OpGen Inc or give up 92.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 87.07% |
| Values | Daily Returns |
Movano Inc vs. OpGen Inc
Performance |
| Timeline |
| Movano Inc |
| OpGen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Movano and OpGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movano and OpGen
The main advantage of trading using opposite Movano and OpGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movano position performs unexpectedly, OpGen 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 OpGen will offset losses from the drop in OpGen's long position.The idea behind Movano Inc and OpGen Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| OpGen vs. Bone Biologics Corp | OpGen vs. NanoVibronix | OpGen vs. Bluejay Diagnostics | OpGen vs. Vivos Therapeutics |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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