Correlation Between Ozop Surgical and Plug Power

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

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

Diversification Opportunities for Ozop Surgical and Plug Power

-0.46

Correlation Coefficient

Ozop Surgical  Plug Power

Very good diversification

The 3 months correlation between Ozop and Plug is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ozop Surgical Corp and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power and Ozop Surgical 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 Ozop Surgical Corp are associated (or correlated) with Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Ozop Surgical i.e., Ozop Surgical and Plug Power go up and down completely randomly.

Pair Corralation between Ozop Surgical and Plug Power

Given the investment horizon of 90 days Ozop Surgical Corp is expected to generate 1.41 times more return on investment than Plug Power. However, Ozop Surgical is 1.41 times more volatile than Plug Power. It trades about -0.01 of its potential returns per unit of risk. Plug Power is currently generating about -0.03 per unit of risk. If you would invest  0.50  in Ozop Surgical Corp on September 29, 2024 and sell it today you would lose (0.43) from holding Ozop Surgical Corp or give up 86.0% of portfolio value over 90 days.

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

Ozop Surgical Corp  vs.  Plug Power

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 fragile 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.

Plug Power

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Plug Power are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Plug Power reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ozop Surgical and Plug Power

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

The idea behind Ozop Surgical Corp and Plug Power 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 Global Correlations module to find global opportunities by holding instruments from different markets.