Correlation Between BKV and Ozop Surgical

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

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

Diversification Opportunities for BKV and Ozop Surgical

-0.69

Correlation Coefficient

BKV  Ozop Surgical

Excellent diversification

The 3 months correlation between BKV and Ozop is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding BKV Corp. and Ozop Surgical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ozop Surgical Corp and BKV 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 BKV Corporation are associated (or correlated) with Ozop Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ozop Surgical Corp has no effect on the direction of BKV i.e., BKV and Ozop Surgical go up and down completely randomly.

Pair Corralation between BKV and Ozop Surgical

Considering the 90-day investment horizon BKV Corporation is expected to generate 0.18 times more return on investment than Ozop Surgical. However, BKV Corporation is 5.42 times less risky than Ozop Surgical. It trades about 0.1 of its potential returns per unit of risk. Ozop Surgical Corp is currently generating about -0.08 per unit of risk. If you would invest  2,174  in BKV Corporation on September 27, 2024 and sell it today you would earn a total of  81.00  from holding BKV Corporation or generate 3.73% return on investment over 90 days.

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

BKV Corp.  vs.  Ozop Surgical Corp

BKV Corporation

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BKV Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward-looking signals, BKV showed solid returns over the last few months and may actually be approaching a breakup point.

Ozop Surgical Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ozop Surgical Corp 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 rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with BKV and Ozop Surgical

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

The idea behind BKV Corporation and Ozop Surgical Corp 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.