Correlation Between OPKO HEALTH and ATT
Can any of the company-specific risk be diversified away by investing in both OPKO HEALTH and ATT 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 ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPKO HEALTH and ATT Inc, you can compare the effects of market volatilities on OPKO HEALTH and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPKO HEALTH and ATT.
Diversification Opportunities for OPKO HEALTH and ATT
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OPKO and ATT is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding OPKO HEALTH and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of OPKO HEALTH i.e., OPKO HEALTH and ATT go up and down completely randomly.
Pair Corralation between OPKO HEALTH and ATT
Assuming the 90 days trading horizon OPKO HEALTH is expected to generate 1.03 times less return on investment than ATT. In addition to that, OPKO HEALTH is 1.78 times more volatile than ATT Inc. It trades about 0.03 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.06 per unit of volatility. If you would invest 1,576 in ATT Inc on November 8, 2024 and sell it today you would earn a total of 763.00 from holding ATT Inc or generate 48.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPKO HEALTH vs. ATT Inc
Performance |
| Timeline |
| OPKO HEALTH |
| ATT Inc |
OPKO HEALTH and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPKO HEALTH and ATT
The main advantage of trading using opposite OPKO HEALTH and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPKO HEALTH position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT'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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |