Correlation Between ReShape Lifesciences and OpGen

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

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

Diversification Opportunities for ReShape Lifesciences and OpGen

0.54

Correlation Coefficient

ReShape Lifesciences  OpGen

Very weak diversification

The 3 months correlation between ReShape and OpGen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and OpGen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpGen Inc and ReShape Lifesciences 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 ReShape Lifesciences 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 ReShape Lifesciences i.e., ReShape Lifesciences and OpGen go up and down completely randomly.

Pair Corralation between ReShape Lifesciences and OpGen

If you would invest  190.00  in OpGen Inc on September 24, 2024 and sell it today you would earn a total of  0.00  from holding OpGen Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	2.33%
Values	Daily Returns

ReShape Lifesciences  vs.  OpGen Inc

ReShape Lifesciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ReShape Lifesciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private 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 ReShape Lifesciences and OpGen

The main advantage of trading using opposite ReShape Lifesciences and OpGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences 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 ReShape Lifesciences 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.