Correlation Between Burning Rock and Olink Holding
Can any of the company-specific risk be diversified away by investing in both Burning Rock 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 Burning Rock and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burning Rock Biotech and Olink Holding AB, you can compare the effects of market volatilities on Burning Rock 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 Burning Rock with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and Olink Holding.
Diversification Opportunities for Burning Rock and Olink Holding
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burning and Olink is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech 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 Burning Rock 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 Burning Rock Biotech 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 Burning Rock i.e., Burning Rock and Olink Holding go up and down completely randomly.
Pair Corralation between Burning Rock and Olink Holding
If you would invest 285.00 in Burning Rock Biotech on August 27, 2024 and sell it today you would earn a total of 275.00 from holding Burning Rock Biotech or generate 96.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Burning Rock Biotech vs. Olink Holding AB
Performance |
| Timeline |
| Burning Rock Biotech |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Burning Rock and Olink Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and Olink Holding
The main advantage of trading using opposite Burning Rock and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock 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.| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |