Correlation Between Optimi Health and Forafric Global

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

By analyzing existing cross correlation between Optimi Health Corp and Forafric Global PLC, you can compare the effects of market volatilities on Optimi Health and Forafric Global 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 Optimi Health with a short position of Forafric Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optimi Health and Forafric Global.

Diversification Opportunities for Optimi Health and Forafric Global

0.83

Correlation Coefficient

Optimi Health  Forafric Global

Very poor diversification

The 3 months correlation between Optimi and Forafric is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Optimi Health Corp and Forafric Global PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forafric Global PLC and Optimi 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 Optimi Health Corp are associated (or correlated) with Forafric Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forafric Global PLC has no effect on the direction of Optimi Health i.e., Optimi Health and Forafric Global go up and down completely randomly.

Pair Corralation between Optimi Health and Forafric Global

Assuming the 90 days horizon Optimi Health is expected to generate 1.58 times less return on investment than Forafric Global. But when comparing it to its historical volatility, Optimi Health Corp is 1.77 times less risky than Forafric Global. It trades about 0.22 of its potential returns per unit of risk. Forafric Global PLC is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  42.00  in Forafric Global PLC on August 4, 2025 and sell it today you would earn a total of  56.00  from holding Forafric Global PLC or generate 133.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	80.0%
Values	Daily Returns

Optimi Health Corp  vs.  Forafric Global PLC

Optimi Health Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Optimi Health Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Optimi Health reported solid returns over the last few months and may actually be approaching a breakup point.

Forafric Global PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Forafric Global PLC are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting forward indicators, Forafric Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Optimi Health and Forafric Global

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

The idea behind Optimi Health Corp and Forafric Global 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.