Correlation Between OPKO HEALTH and MEITUAN UNSPADR/2B
Can any of the company-specific risk be diversified away by investing in both OPKO HEALTH and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPKO HEALTH and MEITUAN UNSPADR2B, you can compare the effects of market volatilities on OPKO HEALTH and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPKO HEALTH and MEITUAN UNSPADR/2B.
Diversification Opportunities for OPKO HEALTH and MEITUAN UNSPADR/2B
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OPKO and MEITUAN is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding OPKO HEALTH and MEITUAN UNSPADR2B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITUAN UNSPADR/2B has no effect on the direction of OPKO HEALTH i.e., OPKO HEALTH and MEITUAN UNSPADR/2B go up and down completely randomly.
Pair Corralation between OPKO HEALTH and MEITUAN UNSPADR/2B
Assuming the 90 days trading horizon OPKO HEALTH is expected to generate 0.49 times more return on investment than MEITUAN UNSPADR/2B. However, OPKO HEALTH is 2.04 times less risky than MEITUAN UNSPADR/2B. It trades about -0.28 of its potential returns per unit of risk. MEITUAN UNSPADR2B is currently generating about -0.35 per unit of risk. If you would invest 150.00 in OPKO HEALTH on October 12, 2024 and sell it today you would lose (7.00) from holding OPKO HEALTH or give up 4.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPKO HEALTH vs. MEITUAN UNSPADR2B
Performance |
| Timeline |
| OPKO HEALTH |
| MEITUAN UNSPADR/2B |
OPKO HEALTH and MEITUAN UNSPADR/2B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPKO HEALTH and MEITUAN UNSPADR/2B
The main advantage of trading using opposite OPKO HEALTH and MEITUAN UNSPADR/2B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPKO HEALTH position performs unexpectedly, MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B will offset losses from the drop in MEITUAN UNSPADR/2B's long position.| OPKO HEALTH vs. DEVRY EDUCATION GRP | OPKO HEALTH vs. STRAYER EDUCATION | OPKO HEALTH vs. Take Two Interactive Software | OPKO HEALTH vs. FORMPIPE SOFTWARE AB |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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