Correlation Between OPKO HEALTH and ANGANG STEEL
Can any of the company-specific risk be diversified away by investing in both OPKO HEALTH and ANGANG STEEL 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 ANGANG STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPKO HEALTH and ANGANG STEEL H , you can compare the effects of market volatilities on OPKO HEALTH and ANGANG STEEL 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 ANGANG STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPKO HEALTH and ANGANG STEEL.
Diversification Opportunities for OPKO HEALTH and ANGANG STEEL
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between OPKO and ANGANG is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding OPKO HEALTH and ANGANG STEEL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGANG STEEL H 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 ANGANG STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGANG STEEL H has no effect on the direction of OPKO HEALTH i.e., OPKO HEALTH and ANGANG STEEL go up and down completely randomly.
Pair Corralation between OPKO HEALTH and ANGANG STEEL
Assuming the 90 days trading horizon OPKO HEALTH is expected to generate 0.52 times more return on investment than ANGANG STEEL. However, OPKO HEALTH is 1.92 times less risky than ANGANG STEEL. It trades about 0.09 of its potential returns per unit of risk. ANGANG STEEL H is currently generating about 0.04 per unit of risk. If you would invest 93.00 in OPKO HEALTH on November 3, 2024 and sell it today you would earn a total of 50.00 from holding OPKO HEALTH or generate 53.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
OPKO HEALTH vs. ANGANG STEEL H
Performance |
| Timeline |
| OPKO HEALTH |
| ANGANG STEEL H |
OPKO HEALTH and ANGANG STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPKO HEALTH and ANGANG STEEL
The main advantage of trading using opposite OPKO HEALTH and ANGANG STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPKO HEALTH position performs unexpectedly, ANGANG STEEL 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 ANGANG STEEL will offset losses from the drop in ANGANG STEEL's long position.| OPKO HEALTH vs. SIVERS SEMICONDUCTORS AB | OPKO HEALTH vs. NorAm Drilling AS | OPKO HEALTH vs. Volkswagen AG | OPKO HEALTH vs. Darden Restaurants |
| ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |