Correlation Between Castle Biosciences and Olink Holding
Can any of the company-specific risk be diversified away by investing in both Castle Biosciences 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 Castle Biosciences and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castle Biosciences and Olink Holding AB, you can compare the effects of market volatilities on Castle Biosciences 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 Castle Biosciences with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castle Biosciences and Olink Holding.
Diversification Opportunities for Castle Biosciences and Olink Holding
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Castle and Olink is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences i.e., Castle Biosciences and Olink Holding go up and down completely randomly.
Pair Corralation between Castle Biosciences and Olink Holding
If you would invest 2,608 in Olink Holding AB on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Olink Holding AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Castle Biosciences vs. Olink Holding AB
Performance |
| Timeline |
| Castle Biosciences |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Castle Biosciences and Olink Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castle Biosciences and Olink Holding
The main advantage of trading using opposite Castle Biosciences and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castle Biosciences 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.| Castle Biosciences vs. Caredx Inc | Castle Biosciences vs. Twist Bioscience Corp | Castle Biosciences vs. Biodesix | Castle Biosciences vs. Natera 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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