Correlation Between Opko Health and Nice
Can any of the company-specific risk be diversified away by investing in both Opko Health and Nice 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 Opko Health and Nice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opko Health and Nice, you can compare the effects of market volatilities on Opko Health and Nice 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 Opko Health with a short position of Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opko Health and Nice.
Diversification Opportunities for Opko Health and Nice
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Opko and Nice is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Opko Health and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice and Opko Health 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 Opko Health are associated (or correlated) with Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Opko Health i.e., Opko Health and Nice go up and down completely randomly.
Pair Corralation between Opko Health and Nice
Assuming the 90 days trading horizon Opko Health is expected to generate 1.08 times more return on investment than Nice. However, Opko Health is 1.08 times more volatile than Nice. It trades about 0.15 of its potential returns per unit of risk. Nice is currently generating about 0.01 per unit of risk. If you would invest 53,580 in Opko Health on August 28, 2024 and sell it today you would earn a total of 5,820 from holding Opko Health or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opko Health vs. Nice
Performance |
| Timeline |
| Opko Health |
| Nice |
Opko Health and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opko Health and Nice
The main advantage of trading using opposite Opko Health and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opko Health position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.| Opko Health vs. Teva Pharmaceutical Industries | Opko Health vs. Tower Semiconductor | Opko Health vs. Nice | Opko Health vs. Kamada |
| Nice vs. Elbit Systems | Nice vs. Tower Semiconductor | Nice vs. Bank Leumi Le Israel | Nice vs. Teva Pharmaceutical Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |