Correlation Between Olink Holding and ICON PLC
Can any of the company-specific risk be diversified away by investing in both Olink Holding and ICON PLC 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 Olink Holding and ICON PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Olink Holding AB and ICON PLC, you can compare the effects of market volatilities on Olink Holding and ICON PLC 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 Olink Holding with a short position of ICON PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and ICON PLC.
Diversification Opportunities for Olink Holding and ICON PLC
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olink and ICON is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and ICON PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICON PLC and Olink Holding 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 Olink Holding AB are associated (or correlated) with ICON PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICON PLC has no effect on the direction of Olink Holding i.e., Olink Holding and ICON PLC go up and down completely randomly.
Pair Corralation between Olink Holding and ICON PLC
Considering the 90-day investment horizon Olink Holding AB is expected to generate 1.99 times more return on investment than ICON PLC. However, Olink Holding is 1.99 times more volatile than ICON PLC. It trades about 0.03 of its potential returns per unit of risk. ICON PLC is currently generating about 0.02 per unit of risk. If you would invest 2,037 in Olink Holding AB on August 31, 2024 and sell it today you would earn a total of 571.00 from holding Olink Holding AB or generate 28.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 79.08% |
| Values | Daily Returns |
Olink Holding AB vs. ICON PLC
Performance |
| Timeline |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ICON PLC |
Olink Holding and ICON PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olink Holding and ICON PLC
The main advantage of trading using opposite Olink Holding and ICON PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, ICON PLC 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 ICON PLC will offset losses from the drop in ICON PLC's long position.| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
| ICON PLC vs. Mettler Toledo International | ICON PLC vs. Charles River Laboratories | ICON PLC vs. Laboratory of | ICON PLC vs. IQVIA Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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