Correlation Between Opthea and QuantumSi

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

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

Diversification Opportunities for Opthea and QuantumSi

-0.38

Correlation Coefficient

Opthea  QuantumSi

Very good diversification

The 3 months correlation between Opthea and QuantumSi is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Opthea and QuantumSi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantumSi and Opthea 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 Opthea are associated (or correlated) with QuantumSi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantumSi has no effect on the direction of Opthea i.e., Opthea and QuantumSi go up and down completely randomly.

Pair Corralation between Opthea and QuantumSi

Considering the 90-day investment horizon Opthea is expected to generate 0.6 times more return on investment than QuantumSi. However, Opthea is 1.67 times less risky than QuantumSi. It trades about 0.0 of its potential returns per unit of risk. QuantumSi is currently generating about -0.09 per unit of risk. If you would invest  387.00  in Opthea on December 29, 2024 and sell it today you would lose (46.00) from holding Opthea or give up 11.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.89%
Values	Daily Returns

Opthea  vs.  QuantumSi

Opthea

Risk-Adjusted Performance

Very Weak

Over the last 90 days Opthea has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Opthea is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

QuantumSi

Risk-Adjusted Performance

Very Weak

Over the last 90 days QuantumSi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Opthea and QuantumSi

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

The idea behind Opthea and QuantumSi 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.