Correlation Between Biocept and Olink Holding
Can any of the company-specific risk be diversified away by investing in both Biocept 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 Biocept and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biocept and Olink Holding AB, you can compare the effects of market volatilities on Biocept 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 Biocept with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocept and Olink Holding.
Diversification Opportunities for Biocept and Olink Holding
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biocept and Olink is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Biocept 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 Biocept 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 Biocept 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 Biocept i.e., Biocept and Olink Holding go up and down completely randomly.
Pair Corralation between Biocept and Olink Holding
If you would invest 2,395 in Olink Holding AB on August 29, 2024 and sell it today you would earn a total of 213.00 from holding Olink Holding AB or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 3.57% |
| Values | Daily Returns |
Biocept vs. Olink Holding AB
Performance |
| Timeline |
| Biocept |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Biocept and Olink Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biocept and Olink Holding
The main advantage of trading using opposite Biocept and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocept 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.The idea behind Biocept and Olink Holding AB 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.| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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