Correlation Between LumiraDx and ISpecimen
Can any of the company-specific risk be diversified away by investing in both LumiraDx 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 LumiraDx and ISpecimen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LumiraDx and iSpecimen, you can compare the effects of market volatilities on LumiraDx 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 LumiraDx with a short position of ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of LumiraDx and ISpecimen.
Diversification Opportunities for LumiraDx and ISpecimen
Very weak diversification
The 3 months correlation between LumiraDx and ISpecimen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding LumiraDx and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen and LumiraDx 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 LumiraDx 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 LumiraDx i.e., LumiraDx and ISpecimen go up and down completely randomly.
Pair Corralation between LumiraDx and ISpecimen
If you would invest 42.00 in LumiraDx on August 25, 2024 and sell it today you would earn a total of 0.00 from holding LumiraDx or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.22% |
| Values | Daily Returns |
LumiraDx vs. iSpecimen
Performance |
| Timeline |
| LumiraDx |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iSpecimen |
LumiraDx and ISpecimen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LumiraDx and ISpecimen
The main advantage of trading using opposite LumiraDx and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LumiraDx 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.| LumiraDx vs. Fonar | LumiraDx vs. Burning Rock Biotech | LumiraDx vs. Sera Prognostics | LumiraDx vs. Exagen Inc |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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