Correlation Between OptiBiotix Health and Beazer Homes
Can any of the company-specific risk be diversified away by investing in both OptiBiotix Health and Beazer Homes 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 OptiBiotix Health and Beazer Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OptiBiotix Health Plc and Beazer Homes USA, you can compare the effects of market volatilities on OptiBiotix Health and Beazer Homes 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 OptiBiotix Health with a short position of Beazer Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiBiotix Health and Beazer Homes.
Diversification Opportunities for OptiBiotix Health and Beazer Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OptiBiotix and Beazer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OptiBiotix Health Plc and Beazer Homes USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beazer Homes USA and OptiBiotix 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 OptiBiotix Health Plc are associated (or correlated) with Beazer Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beazer Homes USA has no effect on the direction of OptiBiotix Health i.e., OptiBiotix Health and Beazer Homes go up and down completely randomly.
Pair Corralation between OptiBiotix Health and Beazer Homes
Assuming the 90 days trading horizon OptiBiotix Health Plc is expected to under-perform the Beazer Homes. In addition to that, OptiBiotix Health is 1.24 times more volatile than Beazer Homes USA. It trades about -0.19 of its total potential returns per unit of risk. Beazer Homes USA is currently generating about 0.2 per unit of volatility. If you would invest 1,887 in Beazer Homes USA on April 23, 2025 and sell it today you would earn a total of 455.00 from holding Beazer Homes USA or generate 24.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 58.06% |
Values | Daily Returns |
OptiBiotix Health Plc vs. Beazer Homes USA
Performance |
Timeline |
OptiBiotix Health Plc |
Beazer Homes USA |
Risk-Adjusted Performance
Good
Weak | Strong |
OptiBiotix Health and Beazer Homes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OptiBiotix Health and Beazer Homes
The main advantage of trading using opposite OptiBiotix Health and Beazer Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiBiotix Health position performs unexpectedly, Beazer Homes 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 Beazer Homes will offset losses from the drop in Beazer Homes' long position.OptiBiotix Health vs. Gaztransport et Technigaz | OptiBiotix Health vs. Charter Communications Cl | OptiBiotix Health vs. National Beverage Corp | OptiBiotix Health vs. Aeorema Communications Plc |
Beazer Homes vs. Made Tech Group | Beazer Homes vs. Roebuck Food Group | Beazer Homes vs. Dairy Farm International | Beazer Homes vs. L3Harris Technologies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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