Correlation Between OptiBiotix Health and Abrdn Property

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

Diversification Opportunities for OptiBiotix Health and Abrdn Property

0.72

Correlation Coefficient

OptiBiotix Health  Abrdn Property

Poor diversification

The 3 months correlation between OptiBiotix and Abrdn is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding OptiBiotix Health Plc and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income 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 Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of OptiBiotix Health i.e., OptiBiotix Health and Abrdn Property go up and down completely randomly.

Pair Corralation between OptiBiotix Health and Abrdn Property

Assuming the 90 days trading horizon OptiBiotix Health Plc is expected to under-perform the Abrdn Property. In addition to that, OptiBiotix Health is 1.57 times more volatile than abrdn Property Income. It trades about -0.19 of its total potential returns per unit of risk. abrdn Property Income is currently generating about -0.07 per unit of volatility. If you would invest  614.00  in abrdn Property Income on April 20, 2025 and sell it today you would lose (83.00) from holding abrdn Property Income or give up 13.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

OptiBiotix Health Plc  vs.  abrdn Property Income

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.

abrdn Property Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days abrdn Property Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with OptiBiotix Health and Abrdn Property

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

The idea behind OptiBiotix Health Plc and abrdn Property Income 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.