Correlation Between Aclaris Therapeutics and Olink Holding
Can any of the company-specific risk be diversified away by investing in both Aclaris Therapeutics and Olink Holding 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 Aclaris Therapeutics and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aclaris Therapeutics and Olink Holding AB, you can compare the effects of market volatilities on Aclaris Therapeutics and Olink Holding 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 Aclaris Therapeutics with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclaris Therapeutics and Olink Holding.
Diversification Opportunities for Aclaris Therapeutics and Olink Holding
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aclaris and Olink is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aclaris Therapeutics and Olink Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olink Holding AB and Aclaris Therapeutics 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 Aclaris Therapeutics are associated (or correlated) with Olink Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olink Holding AB has no effect on the direction of Aclaris Therapeutics i.e., Aclaris Therapeutics and Olink Holding go up and down completely randomly.
Pair Corralation between Aclaris Therapeutics and Olink Holding
If you would invest 120.00 in Aclaris Therapeutics on August 28, 2024 and sell it today you would earn a total of 279.00 from holding Aclaris Therapeutics or generate 232.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Aclaris Therapeutics vs. Olink Holding AB
Performance |
| Timeline |
| Aclaris Therapeutics |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aclaris Therapeutics and Olink Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aclaris Therapeutics and Olink Holding
The main advantage of trading using opposite Aclaris Therapeutics and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclaris Therapeutics position performs unexpectedly, Olink Holding 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 Olink Holding will offset losses from the drop in Olink Holding's long position.| Aclaris Therapeutics vs. Neogen | Aclaris Therapeutics vs. Qiagen NV | Aclaris Therapeutics vs. Sotera Health Co | Aclaris Therapeutics vs. RadNet Inc |
| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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