Correlation Between OraSure Technologies and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both OraSure Technologies and Akoya Biosciences 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 OraSure Technologies and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OraSure Technologies and Akoya Biosciences, you can compare the effects of market volatilities on OraSure Technologies and Akoya Biosciences 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 OraSure Technologies with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of OraSure Technologies and Akoya Biosciences.
Diversification Opportunities for OraSure Technologies and Akoya Biosciences
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OraSure and Akoya is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding OraSure Technologies and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and OraSure Technologies 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 OraSure Technologies are associated (or correlated) with Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of OraSure Technologies i.e., OraSure Technologies and Akoya Biosciences go up and down completely randomly.
Pair Corralation between OraSure Technologies and Akoya Biosciences
Given the investment horizon of 90 days OraSure Technologies is expected to under-perform the Akoya Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, OraSure Technologies is 1.53 times less risky than Akoya Biosciences. The stock trades about -0.09 of its potential returns per unit of risk. The Akoya Biosciences is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 212.00 in Akoya Biosciences on September 22, 2024 and sell it today you would earn a total of 37.00 from holding Akoya Biosciences or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OraSure Technologies vs. Akoya Biosciences
Performance |
| Timeline |
| OraSure Technologies |
| Akoya Biosciences |
OraSure Technologies and Akoya Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OraSure Technologies and Akoya Biosciences
The main advantage of trading using opposite OraSure Technologies and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OraSure Technologies position performs unexpectedly, Akoya Biosciences 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 Akoya Biosciences will offset losses from the drop in Akoya Biosciences' long position.| OraSure Technologies vs. Akoya Biosciences | OraSure Technologies vs. AtriCure | OraSure Technologies vs. ICU Medical | OraSure Technologies vs. Haemonetics |
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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