Correlation Between OpGen and Cannabix Technologies
Can any of the company-specific risk be diversified away by investing in both OpGen and Cannabix Technologies 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 OpGen and Cannabix Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OpGen Inc and Cannabix Technologies, you can compare the effects of market volatilities on OpGen and Cannabix Technologies 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 OpGen with a short position of Cannabix Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of OpGen and Cannabix Technologies.
Diversification Opportunities for OpGen and Cannabix Technologies
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OpGen and Cannabix is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding OpGen Inc and Cannabix Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabix Technologies and OpGen 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 OpGen Inc are associated (or correlated) with Cannabix Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabix Technologies has no effect on the direction of OpGen i.e., OpGen and Cannabix Technologies go up and down completely randomly.
Pair Corralation between OpGen and Cannabix Technologies
Given the investment horizon of 90 days OpGen Inc is expected to under-perform the Cannabix Technologies. In addition to that, OpGen is 2.03 times more volatile than Cannabix Technologies. It trades about 0.0 of its total potential returns per unit of risk. Cannabix Technologies is currently generating about 0.02 per unit of volatility. If you would invest 38.00 in Cannabix Technologies on August 28, 2024 and sell it today you would lose (11.00) from holding Cannabix Technologies or give up 28.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.07% |
| Values | Daily Returns |
OpGen Inc vs. Cannabix Technologies
Performance |
| Timeline |
| OpGen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cannabix Technologies |
OpGen and Cannabix Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OpGen and Cannabix Technologies
The main advantage of trading using opposite OpGen and Cannabix Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OpGen position performs unexpectedly, Cannabix Technologies 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 Cannabix Technologies will offset losses from the drop in Cannabix Technologies' long position.| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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