Correlation Between OPKO HEALTH and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both OPKO HEALTH and GAMESTOP 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 GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPKO HEALTH and GAMESTOP, you can compare the effects of market volatilities on OPKO HEALTH and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPKO HEALTH and GAMESTOP.
Diversification Opportunities for OPKO HEALTH and GAMESTOP
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OPKO and GAMESTOP is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding OPKO HEALTH and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of OPKO HEALTH i.e., OPKO HEALTH and GAMESTOP go up and down completely randomly.
Pair Corralation between OPKO HEALTH and GAMESTOP
Assuming the 90 days trading horizon OPKO HEALTH is expected to under-perform the GAMESTOP. But the stock apears to be less risky and, when comparing its historical volatility, OPKO HEALTH is 4.29 times less risky than GAMESTOP. The stock trades about -0.17 of its potential returns per unit of risk. The GAMESTOP is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,712 in GAMESTOP on October 17, 2024 and sell it today you would earn a total of 25.00 from holding GAMESTOP or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
OPKO HEALTH vs. GAMESTOP
Performance |
| Timeline |
| OPKO HEALTH |
| GAMESTOP |
OPKO HEALTH and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPKO HEALTH and GAMESTOP
The main advantage of trading using opposite OPKO HEALTH and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPKO HEALTH position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| OPKO HEALTH vs. Highlight Communications AG | OPKO HEALTH vs. Shenandoah Telecommunications | OPKO HEALTH vs. ecotel communication ag | OPKO HEALTH vs. Casio Computer CoLtd |
| GAMESTOP vs. Meiko Electronics Co | GAMESTOP vs. Electronic Arts | GAMESTOP vs. Goosehead Insurance | GAMESTOP vs. TT Electronics PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |