Correlation Between OPKO HEALTH and AT S

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

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

Diversification Opportunities for OPKO HEALTH and AT S

0.4

Correlation Coefficient

OPKO HEALTH  AT S

Very weak diversification

The 3 months correlation between OPKO and AUS is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding OPKO HEALTH and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and OPKO HEALTH 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 OPKO HEALTH are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of OPKO HEALTH i.e., OPKO HEALTH and AT S go up and down completely randomly.

Pair Corralation between OPKO HEALTH and AT S

Assuming the 90 days trading horizon OPKO HEALTH is expected to generate 2.15 times less return on investment than AT S. But when comparing it to its historical volatility, OPKO HEALTH is 1.93 times less risky than AT S. It trades about 0.09 of its potential returns per unit of risk. AT S Austria is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,120  in AT S Austria on December 19, 2024 and sell it today you would earn a total of  214.00  from holding AT S Austria or generate 19.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

OPKO HEALTH  vs.  AT S Austria

OPKO HEALTH

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OPKO HEALTH are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, OPKO HEALTH may actually be approaching a critical reversion point that can send shares even higher in April 2025.

AT S Austria

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AT S Austria are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, AT S reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OPKO HEALTH and AT S

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

The idea behind OPKO HEALTH and AT S Austria 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.