Correlation Between OPKO HEALTH and Aya Gold
Can any of the company-specific risk be diversified away by investing in both OPKO HEALTH and Aya Gold 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 Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPKO HEALTH and Aya Gold Silver, you can compare the effects of market volatilities on OPKO HEALTH and Aya Gold 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 Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPKO HEALTH and Aya Gold.
Diversification Opportunities for OPKO HEALTH and Aya Gold
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OPKO and Aya is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding OPKO HEALTH and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver 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 Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of OPKO HEALTH i.e., OPKO HEALTH and Aya Gold go up and down completely randomly.
Pair Corralation between OPKO HEALTH and Aya Gold
Assuming the 90 days trading horizon OPKO HEALTH is expected to generate 2.55 times less return on investment than Aya Gold. But when comparing it to its historical volatility, OPKO HEALTH is 5.63 times less risky than Aya Gold. It trades about 0.15 of its potential returns per unit of risk. Aya Gold Silver is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 746.00 in Aya Gold Silver on November 7, 2024 and sell it today you would earn a total of 32.00 from holding Aya Gold Silver or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OPKO HEALTH vs. Aya Gold Silver
Performance |
| Timeline |
| OPKO HEALTH |
| Aya Gold Silver |
OPKO HEALTH and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPKO HEALTH and Aya Gold
The main advantage of trading using opposite OPKO HEALTH and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPKO HEALTH position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| OPKO HEALTH vs. SINGAPORE AIRLINES | OPKO HEALTH vs. CLEAN ENERGY FUELS | OPKO HEALTH vs. AEGEAN AIRLINES | OPKO HEALTH vs. CVW CLEANTECH INC |
| Aya Gold vs. Wyndham Hotels Resorts | Aya Gold vs. AIR LIQUIDE ADR | Aya Gold vs. INTERCONT HOTELS | Aya Gold vs. NORWEGIAN AIR SHUT |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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