Correlation Between Tel Aviv and Opko Health
Can any of the company-specific risk be diversified away by investing in both Tel Aviv and Opko Health 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 Tel Aviv and Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tel Aviv 35 and Opko Health, you can compare the effects of market volatilities on Tel Aviv and Opko Health 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 Tel Aviv with a short position of Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and Opko Health.
Diversification Opportunities for Tel Aviv and Opko Health
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tel and Opko is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health and Tel Aviv 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 Tel Aviv 35 are associated (or correlated) with Opko Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opko Health has no effect on the direction of Tel Aviv i.e., Tel Aviv and Opko Health go up and down completely randomly.
Pair Corralation between Tel Aviv and Opko Health
Assuming the 90 days trading horizon Tel Aviv is expected to generate 2.52 times less return on investment than Opko Health. But when comparing it to its historical volatility, Tel Aviv 35 is 4.07 times less risky than Opko Health. It trades about 0.05 of its potential returns per unit of risk. Opko Health is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 50,050 in Opko Health on August 26, 2024 and sell it today you would earn a total of 8,700 from holding Opko Health or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tel Aviv 35 vs. Opko Health
Performance |
| Timeline |
Tel Aviv and Opko Health Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
Opko Health
Pair trading matchups for Opko Health
Pair Trading with Tel Aviv and Opko Health
The main advantage of trading using opposite Tel Aviv and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, Opko Health 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 Opko Health will offset losses from the drop in Opko Health's long position.| Tel Aviv vs. Feat Fund Investments | Tel Aviv vs. Libra Insurance | Tel Aviv vs. Blender Financial Technologies | Tel Aviv vs. Clal Insurance Enterprises |
| Opko Health vs. Teva Pharmaceutical Industries | Opko Health vs. Tower Semiconductor | Opko Health vs. Nice | Opko Health vs. Kamada |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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