Correlation Between Olink Holding and ENDRA Life
Can any of the company-specific risk be diversified away by investing in both Olink Holding and ENDRA Life 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 ENDRA Life 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 ENDRA Life Sciences, you can compare the effects of market volatilities on Olink Holding and ENDRA Life 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 ENDRA Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and ENDRA Life.
Diversification Opportunities for Olink Holding and ENDRA Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olink and ENDRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and ENDRA Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENDRA Life Sciences 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 ENDRA Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENDRA Life Sciences has no effect on the direction of Olink Holding i.e., Olink Holding and ENDRA Life go up and down completely randomly.
Pair Corralation between Olink Holding and ENDRA Life
Considering the 90-day investment horizon Olink Holding AB is expected to generate 0.1 times more return on investment than ENDRA Life. However, Olink Holding AB is 10.37 times less risky than ENDRA Life. It trades about 0.06 of its potential returns per unit of risk. ENDRA Life Sciences is currently generating about -0.13 per unit of risk. If you would invest 2,445 in Olink Holding AB on November 3, 2024 and sell it today you would earn a total of 163.00 from holding Olink Holding AB or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 43.15% |
| Values | Daily Returns |
Olink Holding AB vs. ENDRA Life Sciences
Performance |
| Timeline |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ENDRA Life Sciences |
Olink Holding and ENDRA Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olink Holding and ENDRA Life
The main advantage of trading using opposite Olink Holding and ENDRA Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, ENDRA Life 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 ENDRA Life will offset losses from the drop in ENDRA Life's long position.| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. DarioHealth Corp |
| ENDRA Life vs. Burning Rock Biotech | ENDRA Life vs. Neuronetics | ENDRA Life vs. DarioHealth Corp | ENDRA Life vs. Sera Prognostics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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