Correlation Between Check Cap and ISpecimen
Can any of the company-specific risk be diversified away by investing in both Check Cap and ISpecimen 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 Check Cap and ISpecimen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Cap and iSpecimen, you can compare the effects of market volatilities on Check Cap and ISpecimen 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 Check Cap with a short position of ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Cap and ISpecimen.
Diversification Opportunities for Check Cap and ISpecimen
Very weak diversification
The 3 months correlation between Check and ISpecimen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Check Cap and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen and Check Cap 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 Check Cap are associated (or correlated) with ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Check Cap i.e., Check Cap and ISpecimen go up and down completely randomly.
Pair Corralation between Check Cap and ISpecimen
Given the investment horizon of 90 days Check Cap is expected to under-perform the ISpecimen. But the stock apears to be less risky and, when comparing its historical volatility, Check Cap is 1.05 times less risky than ISpecimen. The stock trades about -0.33 of its potential returns per unit of risk. The iSpecimen is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 432.00 in iSpecimen on August 28, 2024 and sell it today you would lose (8.00) from holding iSpecimen or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Check Cap vs. iSpecimen
Performance |
| Timeline |
| Check Cap |
| iSpecimen |
Check Cap and ISpecimen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Cap and ISpecimen
The main advantage of trading using opposite Check Cap and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Cap position performs unexpectedly, ISpecimen 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 ISpecimen will offset losses from the drop in ISpecimen's long position.| Check Cap vs. Fonar | Check Cap vs. Burning Rock Biotech | Check Cap vs. Sera Prognostics | Check Cap vs. Psychemedics |
| ISpecimen vs. Fonar | ISpecimen vs. Castle Biosciences | ISpecimen vs. Exagen Inc | ISpecimen vs. OncoCyte Corp |
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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