Correlation Between OpGen and Vivos

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

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

Diversification Opportunities for OpGen and Vivos

0.29

Correlation Coefficient

OpGen  Vivos

Modest diversification

The 3 months correlation between OpGen and Vivos is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding OpGen Inc and Vivos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Inc and OpGen 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 OpGen Inc are associated (or correlated) with Vivos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivos Inc has no effect on the direction of OpGen i.e., OpGen and Vivos go up and down completely randomly.

Pair Corralation between OpGen and Vivos

Given the investment horizon of 90 days OpGen Inc is expected to under-perform the Vivos. In addition to that, OpGen is 1.8 times more volatile than Vivos Inc. It trades about -0.01 of its total potential returns per unit of risk. Vivos Inc is currently generating about 0.05 per unit of volatility. If you would invest  4.49  in Vivos Inc on September 23, 2024 and sell it today you would earn a total of  4.31  from holding Vivos Inc or generate 95.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.13%
Values	Daily Returns

OpGen Inc  vs.  Vivos Inc

OpGen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OpGen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, OpGen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Vivos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vivos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with OpGen and Vivos

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

The idea behind OpGen Inc and Vivos Inc 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.