Correlation Between Ocumetics Technology and Neogen

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Can any of the company-specific risk be diversified away by investing in both Ocumetics Technology and Neogen 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 Ocumetics Technology and Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocumetics Technology Corp and Neogen, you can compare the effects of market volatilities on Ocumetics Technology and Neogen 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 Ocumetics Technology with a short position of Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocumetics Technology and Neogen.

Diversification Opportunities for Ocumetics Technology and Neogen

-0.67
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Ocumetics and Neogen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ocumetics Technology Corp and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen and Ocumetics Technology 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 Ocumetics Technology Corp are associated (or correlated) with Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Ocumetics Technology i.e., Ocumetics Technology and Neogen go up and down completely randomly.

Pair Corralation between Ocumetics Technology and Neogen

Assuming the 90 days horizon Ocumetics Technology Corp is expected to under-perform the Neogen. In addition to that, Ocumetics Technology is 1.85 times more volatile than Neogen. It trades about -0.16 of its total potential returns per unit of risk. Neogen is currently generating about 0.13 per unit of volatility. If you would invest  604.00  in Neogen on October 10, 2025 and sell it today you would earn a total of  134.00  from holding Neogen or generate 22.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.36%
ValuesDaily Returns

Ocumetics Technology Corp  vs.  Neogen

 Performance 
       Timeline  
Ocumetics Technology Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Ocumetics Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Neogen 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Neogen are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Neogen reported solid returns over the last few months and may actually be approaching a breakup point.

Ocumetics Technology and Neogen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ocumetics Technology and Neogen

The main advantage of trading using opposite Ocumetics Technology and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocumetics Technology position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.
The idea behind Ocumetics Technology Corp and Neogen 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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