Correlation Between OptiBiotix Health and AMG Advanced

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Can any of the company-specific risk be diversified away by investing in both OptiBiotix Health and AMG Advanced 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 AMG Advanced 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 AMG Advanced Metallurgical, you can compare the effects of market volatilities on OptiBiotix Health and AMG Advanced 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 AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiBiotix Health and AMG Advanced.

Diversification Opportunities for OptiBiotix Health and AMG Advanced

-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between OptiBiotix and AMG is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding OptiBiotix Health Plc and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu 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 AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of OptiBiotix Health i.e., OptiBiotix Health and AMG Advanced go up and down completely randomly.

Pair Corralation between OptiBiotix Health and AMG Advanced

Assuming the 90 days trading horizon OptiBiotix Health Plc is expected to under-perform the AMG Advanced. In addition to that, OptiBiotix Health is 1.28 times more volatile than AMG Advanced Metallurgical. It trades about -0.19 of its total potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about 0.29 per unit of volatility. If you would invest  1,524  in AMG Advanced Metallurgical on April 23, 2025 and sell it today you would earn a total of  1,103  from holding AMG Advanced Metallurgical or generate 72.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

OptiBiotix Health Plc  vs.  AMG Advanced Metallurgical

 Performance 
       Timeline  
OptiBiotix Health Plc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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.
AMG Advanced Metallu 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AMG Advanced Metallurgical are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AMG Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

OptiBiotix Health and AMG Advanced Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OptiBiotix Health and AMG Advanced

The main advantage of trading using opposite OptiBiotix Health and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiBiotix Health position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.
The idea behind OptiBiotix Health Plc and AMG Advanced Metallurgical 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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