Correlation Between Olink Holding and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both Olink Holding and Intelligent Bio 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 Intelligent Bio 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 Intelligent Bio Solutions, you can compare the effects of market volatilities on Olink Holding and Intelligent Bio 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 Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and Intelligent Bio.
Diversification Opportunities for Olink Holding and Intelligent Bio
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Olink and Intelligent is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Olink Holding i.e., Olink Holding and Intelligent Bio go up and down completely randomly.
Pair Corralation between Olink Holding and Intelligent Bio
Considering the 90-day investment horizon Olink Holding AB is expected to generate 0.11 times more return on investment than Intelligent Bio. However, Olink Holding AB is 9.01 times less risky than Intelligent Bio. It trades about 0.43 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.01 per unit of risk. If you would invest 2,395 in Olink Holding AB on August 29, 2024 and sell it today you would earn a total of 213.00 from holding Olink Holding AB or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.22% |
| Values | Daily Returns |
Olink Holding AB vs. Intelligent Bio Solutions
Performance |
| Timeline |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Intelligent Bio Solutions |
Olink Holding and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olink Holding and Intelligent Bio
The main advantage of trading using opposite Olink Holding and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
| Intelligent Bio vs. Alta Equipment Group | Intelligent Bio vs. US Global Investors | Intelligent Bio vs. Waste Management | Intelligent Bio vs. FTAI Aviation Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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