Correlation Between Olink Holding and Star Equity
Can any of the company-specific risk be diversified away by investing in both Olink Holding and Star Equity 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 Star Equity 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 Star Equity Holdings, you can compare the effects of market volatilities on Olink Holding and Star Equity 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 Star Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and Star Equity.
Diversification Opportunities for Olink Holding and Star Equity
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olink and Star is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity Holdings 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 Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of Olink Holding i.e., Olink Holding and Star Equity go up and down completely randomly.
Pair Corralation between Olink Holding and Star Equity
Considering the 90-day investment horizon Olink Holding AB is expected to generate 0.38 times more return on investment than Star Equity. However, Olink Holding AB is 2.62 times less risky than Star Equity. It trades about 0.05 of its potential returns per unit of risk. Star Equity Holdings is currently generating about -0.06 per unit of risk. If you would invest 2,449 in Olink Holding AB on September 1, 2024 and sell it today you would earn a total of 159.00 from holding Olink Holding AB or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 52.4% |
| Values | Daily Returns |
Olink Holding AB vs. Star Equity Holdings
Performance |
| Timeline |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Star Equity Holdings |
Olink Holding and Star Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olink Holding and Star Equity
The main advantage of trading using opposite Olink Holding and Star Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, Star Equity 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 Star Equity will offset losses from the drop in Star Equity's long position.| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
| Star Equity vs. Cue Biopharma | Star Equity vs. Tff Pharmaceuticals | Star Equity vs. Lantern Pharma | Star Equity vs. Eliem Therapeutics |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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