Correlation Between Olink Holding and Neogen
Can any of the company-specific risk be diversified away by investing in both Olink Holding and Neogen 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 Neogen 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 Neogen, you can compare the effects of market volatilities on Olink Holding and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and Neogen.
Diversification Opportunities for Olink Holding and Neogen
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Olink and Neogen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Olink Holding i.e., Olink Holding and Neogen go up and down completely randomly.
Pair Corralation between Olink Holding and Neogen
Considering the 90-day investment horizon Olink Holding AB is expected to generate 0.42 times more return on investment than Neogen. However, Olink Holding AB is 2.37 times less risky than Neogen. It trades about 0.05 of its potential returns per unit of risk. Neogen is currently generating about 0.01 per unit of risk. If you would invest 2,448 in Olink Holding AB on August 28, 2024 and sell it today you would earn a total of 160.00 from holding Olink Holding AB or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 53.59% |
| Values | Daily Returns |
Olink Holding AB vs. Neogen
Performance |
| Timeline |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Neogen |
Olink Holding and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olink Holding and Neogen
The main advantage of trading using opposite Olink Holding and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
| Neogen vs. Heartbeam | Neogen vs. EUDA Health Holdings | Neogen vs. Nutex Health | Neogen vs. Healthcare Triangle |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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