Correlation Between Opko Health and Savoreat
Can any of the company-specific risk be diversified away by investing in both Opko Health and Savoreat 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 Savoreat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opko Health and Savoreat, you can compare the effects of market volatilities on Opko Health and Savoreat 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 Savoreat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opko Health and Savoreat.
Diversification Opportunities for Opko Health and Savoreat
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Opko and Savoreat is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Opko Health and Savoreat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savoreat 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 Savoreat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savoreat has no effect on the direction of Opko Health i.e., Opko Health and Savoreat go up and down completely randomly.
Pair Corralation between Opko Health and Savoreat
Assuming the 90 days trading horizon Opko Health is expected to generate 0.84 times more return on investment than Savoreat. However, Opko Health is 1.18 times less risky than Savoreat. It trades about 0.04 of its potential returns per unit of risk. Savoreat is currently generating about -0.05 per unit of risk. If you would invest 42,000 in Opko Health on November 27, 2024 and sell it today you would earn a total of 19,310 from holding Opko Health or generate 45.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opko Health vs. Savoreat
Performance |
| Timeline |
| Opko Health |
| Savoreat |
Opko Health and Savoreat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opko Health and Savoreat
The main advantage of trading using opposite Opko Health and Savoreat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opko Health position performs unexpectedly, Savoreat 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 Savoreat will offset losses from the drop in Savoreat's long position.| Opko Health vs. Teva Pharmaceutical Industries | Opko Health vs. Tower Semiconductor | Opko Health vs. Nice | Opko Health vs. Kamada |
| Savoreat vs. Analyst IMS Investment | Savoreat vs. Hiron Trade Investments Industrial | Savoreat vs. Skyline Investments | Savoreat vs. Retailors |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |