Correlation Between Fortress Biotech and OCUP Old

Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and OCUP Old 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 Fortress Biotech and OCUP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fortress Biotech Pref and OCUP Old, you can compare the effects of market volatilities on Fortress Biotech and OCUP Old 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 Fortress Biotech with a short position of OCUP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and OCUP Old.

Diversification Opportunities for Fortress Biotech and OCUP Old

0.0

Correlation Coefficient

Fortress Biotech  OCUP Old

Pay attention - limited upside

The 3 months correlation between Fortress and OCUP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech Pref and OCUP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCUP Old and Fortress Biotech 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 Fortress Biotech Pref are associated (or correlated) with OCUP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCUP Old has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and OCUP Old go up and down completely randomly.

Pair Corralation between Fortress Biotech and OCUP Old

If you would invest  655.00  in Fortress Biotech Pref on December 23, 2024 and sell it today you would earn a total of  19.00  from holding Fortress Biotech Pref or generate 2.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fortress Biotech Pref  vs.  OCUP Old

Fortress Biotech Pref

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fortress Biotech Pref are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Fortress Biotech is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

OCUP Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days OCUP Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, OCUP Old is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Fortress Biotech and OCUP Old

The main advantage of trading using opposite Fortress Biotech and OCUP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, OCUP Old 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 OCUP Old will offset losses from the drop in OCUP Old's long position.

The idea behind Fortress Biotech Pref and OCUP Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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.