Correlation Between Opko Health and YS Biopharma

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

By analyzing existing cross correlation between Opko Health and YS Biopharma Co,, you can compare the effects of market volatilities on Opko Health and YS Biopharma 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 YS Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opko Health and YS Biopharma.

Diversification Opportunities for Opko Health and YS Biopharma

-0.82

Correlation Coefficient

Opko Health  YS Biopharma

Pay attention - limited upside

The 3 months correlation between Opko and YS Biopharma is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Opko Health and YS Biopharma Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YS Biopharma Co, 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 YS Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YS Biopharma Co, has no effect on the direction of Opko Health i.e., Opko Health and YS Biopharma go up and down completely randomly.

Pair Corralation between Opko Health and YS Biopharma

If you would invest  143.00  in Opko Health on June 9, 2024 and sell it today you would earn a total of  13.00  from holding Opko Health or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	4.55%
Values	Daily Returns

Opko Health  vs.  YS Biopharma Co,

Opko Health

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Opko Health are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Opko Health disclosed solid returns over the last few months and may actually be approaching a breakup point.

YS Biopharma Co,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YS Biopharma Co, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Opko Health and YS Biopharma

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

The idea behind Opko Health and YS Biopharma Co, 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.