Correlation Between OpGen and Biomerica
Can any of the company-specific risk be diversified away by investing in both OpGen and Biomerica 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 Biomerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OpGen Inc and Biomerica, you can compare the effects of market volatilities on OpGen and Biomerica 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 Biomerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of OpGen and Biomerica.
Diversification Opportunities for OpGen and Biomerica
Very weak diversification
The 3 months correlation between OpGen and Biomerica is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding OpGen Inc and Biomerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomerica 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 Biomerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomerica has no effect on the direction of OpGen i.e., OpGen and Biomerica go up and down completely randomly.
Pair Corralation between OpGen and Biomerica
Given the investment horizon of 90 days OpGen Inc is expected to generate 2.1 times more return on investment than Biomerica. However, OpGen is 2.1 times more volatile than Biomerica. It trades about 0.02 of its potential returns per unit of risk. Biomerica is currently generating about -0.02 per unit of risk. If you would invest 600.00 in OpGen Inc on September 1, 2024 and sell it today you would lose (410.00) from holding OpGen Inc or give up 68.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.99% |
| Values | Daily Returns |
OpGen Inc vs. Biomerica
Performance |
| Timeline |
| OpGen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biomerica |
OpGen and Biomerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OpGen and Biomerica
The main advantage of trading using opposite OpGen and Biomerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OpGen position performs unexpectedly, Biomerica 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 Biomerica will offset losses from the drop in Biomerica's long position.| OpGen vs. Bone Biologics Corp | OpGen vs. NanoVibronix | OpGen vs. Bluejay Diagnostics | OpGen vs. Vivos Therapeutics |
| Biomerica vs. SurModics | Biomerica vs. Movano Inc | Biomerica vs. Ainos Inc | Biomerica vs. Tivic Health Systems |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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