Correlation Between 60 Degrees and OptiNose

Can any of the company-specific risk be diversified away by investing in both 60 Degrees and OptiNose 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 60 Degrees and OptiNose into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 60 Degrees Pharmaceuticals, and OptiNose, you can compare the effects of market volatilities on 60 Degrees and OptiNose 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 60 Degrees with a short position of OptiNose. Check out your portfolio center. Please also check ongoing floating volatility patterns of 60 Degrees and OptiNose.

Diversification Opportunities for 60 Degrees and OptiNose

-0.35

Correlation Coefficient

60 Degrees  OptiNose

Very good diversification

The 3 months correlation between SXTPW and OptiNose is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding 60 Degrees Pharmaceuticals, and OptiNose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiNose and 60 Degrees 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 60 Degrees Pharmaceuticals, are associated (or correlated) with OptiNose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiNose has no effect on the direction of 60 Degrees i.e., 60 Degrees and OptiNose go up and down completely randomly.

Pair Corralation between 60 Degrees and OptiNose

Assuming the 90 days horizon 60 Degrees Pharmaceuticals, is expected to generate 3.13 times more return on investment than OptiNose. However, 60 Degrees is 3.13 times more volatile than OptiNose. It trades about 0.08 of its potential returns per unit of risk. OptiNose is currently generating about 0.11 per unit of risk. If you would invest  3.50  in 60 Degrees Pharmaceuticals, on December 29, 2024 and sell it today you would lose (1.10) from holding 60 Degrees Pharmaceuticals, or give up 31.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.33%
Values	Daily Returns

60 Degrees Pharmaceuticals,  vs.  OptiNose

60 Degrees Pharmaceu

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in 60 Degrees Pharmaceuticals, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, 60 Degrees showed solid returns over the last few months and may actually be approaching a breakup point.

OptiNose

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OptiNose are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, OptiNose displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 60 Degrees and OptiNose

The main advantage of trading using opposite 60 Degrees and OptiNose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 60 Degrees position performs unexpectedly, OptiNose 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 OptiNose will offset losses from the drop in OptiNose's long position.

The idea behind 60 Degrees Pharmaceuticals, and OptiNose 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.