Correlation Between Itaconix Plc and OptiBiotix Health

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

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

Diversification Opportunities for Itaconix Plc and OptiBiotix Health

-0.55

Correlation Coefficient

Itaconix Plc  OptiBiotix Health

Excellent diversification

The 3 months correlation between Itaconix and OptiBiotix is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Itaconix plc and OptiBiotix Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiBiotix Health Plc and Itaconix Plc 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 Itaconix plc are associated (or correlated) with OptiBiotix Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiBiotix Health Plc has no effect on the direction of Itaconix Plc i.e., Itaconix Plc and OptiBiotix Health go up and down completely randomly.

Pair Corralation between Itaconix Plc and OptiBiotix Health

Assuming the 90 days trading horizon Itaconix plc is expected to generate 0.7 times more return on investment than OptiBiotix Health. However, Itaconix plc is 1.42 times less risky than OptiBiotix Health. It trades about 0.18 of its potential returns per unit of risk. OptiBiotix Health Plc is currently generating about -0.19 per unit of risk. If you would invest  10,000  in Itaconix plc on April 23, 2025 and sell it today you would earn a total of  3,400  from holding Itaconix plc or generate 34.0% return on investment over 90 days.

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

Itaconix plc  vs.  OptiBiotix Health Plc

Itaconix plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Itaconix plc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Itaconix Plc exhibited solid returns over the last few months and may actually be approaching a breakup point.

OptiBiotix Health Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days OptiBiotix Health Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Itaconix Plc and OptiBiotix Health

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

The idea behind Itaconix plc and OptiBiotix Health Plc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.