Correlation Between Olink Holding and MDxHealth
Can any of the company-specific risk be diversified away by investing in both Olink Holding and MDxHealth 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 MDxHealth 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 MDxHealth SA ADR, you can compare the effects of market volatilities on Olink Holding and MDxHealth 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 MDxHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and MDxHealth.
Diversification Opportunities for Olink Holding and MDxHealth
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olink and MDxHealth is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and MDxHealth SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDxHealth SA ADR 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 MDxHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDxHealth SA ADR has no effect on the direction of Olink Holding i.e., Olink Holding and MDxHealth go up and down completely randomly.
Pair Corralation between Olink Holding and MDxHealth
Considering the 90-day investment horizon Olink Holding is expected to generate 35.42 times less return on investment than MDxHealth. But when comparing it to its historical volatility, Olink Holding AB is 16.54 times less risky than MDxHealth. It trades about 0.03 of its potential returns per unit of risk. MDxHealth SA ADR is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 686.00 in MDxHealth SA ADR on August 30, 2024 and sell it today you would lose (490.00) from holding MDxHealth SA ADR or give up 71.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.59% |
| Values | Daily Returns |
Olink Holding AB vs. MDxHealth SA ADR
Performance |
| Timeline |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MDxHealth SA ADR |
Olink Holding and MDxHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olink Holding and MDxHealth
The main advantage of trading using opposite Olink Holding and MDxHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, MDxHealth 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 MDxHealth will offset losses from the drop in MDxHealth's long position.| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
| MDxHealth vs. Qiagen NV | MDxHealth vs. Aclaris Therapeutics | MDxHealth vs. Neogen | MDxHealth vs. RadNet 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance |