Correlation Between Olink Holding and LumiraDx
Can any of the company-specific risk be diversified away by investing in both Olink Holding and LumiraDx 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 LumiraDx 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 LumiraDx, you can compare the effects of market volatilities on Olink Holding and LumiraDx 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 LumiraDx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and LumiraDx.
Diversification Opportunities for Olink Holding and LumiraDx
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Olink and LumiraDx is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and LumiraDx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LumiraDx 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 LumiraDx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LumiraDx has no effect on the direction of Olink Holding i.e., Olink Holding and LumiraDx go up and down completely randomly.
Pair Corralation between Olink Holding and LumiraDx
If you would invest 42.00 in LumiraDx on August 27, 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olink Holding AB vs. LumiraDx
Performance |
| Timeline |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LumiraDx |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Olink Holding and LumiraDx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olink Holding and LumiraDx
The main advantage of trading using opposite Olink Holding and LumiraDx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, LumiraDx 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 LumiraDx will offset losses from the drop in LumiraDx's long position.| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
| LumiraDx vs. Fonar | LumiraDx vs. Burning Rock Biotech | LumiraDx vs. Sera Prognostics | LumiraDx vs. Exagen Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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