Correlation Between Protalix Biotherapeutics and OCUP Old
Can any of the company-specific risk be diversified away by investing in both Protalix Biotherapeutics and OCUP Old 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 Protalix Biotherapeutics and OCUP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protalix Biotherapeutics and OCUP Old, you can compare the effects of market volatilities on Protalix Biotherapeutics and OCUP Old 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 Protalix Biotherapeutics with a short position of OCUP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protalix Biotherapeutics and OCUP Old.
Diversification Opportunities for Protalix Biotherapeutics and OCUP Old
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Protalix and OCUP is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Protalix Biotherapeutics and OCUP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCUP Old and Protalix Biotherapeutics 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 Protalix Biotherapeutics are associated (or correlated) with OCUP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCUP Old has no effect on the direction of Protalix Biotherapeutics i.e., Protalix Biotherapeutics and OCUP Old go up and down completely randomly.
Pair Corralation between Protalix Biotherapeutics and OCUP Old
Considering the 90-day investment horizon Protalix Biotherapeutics is expected to generate 0.86 times more return on investment than OCUP Old. However, Protalix Biotherapeutics is 1.16 times less risky than OCUP Old. It trades about 0.18 of its potential returns per unit of risk. OCUP Old is currently generating about -0.19 per unit of risk. If you would invest 111.00 in Protalix Biotherapeutics on October 26, 2024 and sell it today you would earn a total of 134.50 from holding Protalix Biotherapeutics or generate 121.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 51.61% |
| Values | Daily Returns |
Protalix Biotherapeutics vs. OCUP Old
Performance |
| Timeline |
| Protalix Biotherapeutics |
| OCUP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Protalix Biotherapeutics and OCUP Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protalix Biotherapeutics and OCUP Old
The main advantage of trading using opposite Protalix Biotherapeutics and OCUP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protalix Biotherapeutics position performs unexpectedly, OCUP Old 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 OCUP Old will offset losses from the drop in OCUP Old's long position.| Protalix Biotherapeutics vs. Corvus Pharmaceuticals | Protalix Biotherapeutics vs. Aldeyra | Protalix Biotherapeutics vs. Checkpoint Therapeutics | Protalix Biotherapeutics vs. Cidara Therapeutics |
| OCUP Old vs. Reviva Pharmaceuticals Holdings | OCUP Old vs. Protalix Biotherapeutics | OCUP Old vs. Eyepoint Pharmaceuticals | OCUP Old vs. Sellas Life Sciences |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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