Correlation Between NanoVibronix and OpGen

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

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

Diversification Opportunities for NanoVibronix and OpGen

-0.67

Correlation Coefficient

NanoVibronix  OpGen

Excellent diversification

The 3 months correlation between NanoVibronix and OpGen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding NanoVibronix and OpGen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpGen Inc and NanoVibronix 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 NanoVibronix 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 NanoVibronix i.e., NanoVibronix and OpGen go up and down completely randomly.

Pair Corralation between NanoVibronix and OpGen

If you would invest  57.00  in NanoVibronix on September 4, 2024 and sell it today you would earn a total of  15.00  from holding NanoVibronix or generate 26.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

NanoVibronix  vs.  OpGen Inc

NanoVibronix

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NanoVibronix are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, NanoVibronix showed solid returns over the last few months and may actually be approaching a breakup point.

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 NanoVibronix and OpGen

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

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.