Correlation Between Vivos and OpGen

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

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

Diversification Opportunities for Vivos and OpGen

0.05

Correlation Coefficient

Vivos  OpGen

Significant diversification

The 3 months correlation between Vivos and OpGen is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Inc and OpGen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpGen Inc and Vivos 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 Vivos Inc are associated (or correlated) with OpGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpGen Inc has no effect on the direction of Vivos i.e., Vivos and OpGen go up and down completely randomly.

Pair Corralation between Vivos and OpGen

Given the investment horizon of 90 days Vivos Inc is expected to generate 0.58 times more return on investment than OpGen. However, Vivos Inc is 1.72 times less risky than OpGen. It trades about 0.06 of its potential returns per unit of risk. OpGen Inc is currently generating about -0.01 per unit of risk. If you would invest  5.50  in Vivos Inc on October 10, 2024 and sell it today you would earn a total of  9.50  from holding Vivos Inc or generate 172.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	81.09%
Values	Daily Returns

Vivos Inc  vs.  OpGen Inc

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 quite persistent technical and fundamental indicators, Vivos is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with Vivos and OpGen

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

The idea behind Vivos Inc and OpGen 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.