Correlation Between Prenetics Global and Olink Holding
Can any of the company-specific risk be diversified away by investing in both Prenetics Global and Olink Holding 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 Prenetics Global and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prenetics Global and Olink Holding AB, you can compare the effects of market volatilities on Prenetics Global and Olink Holding 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 Prenetics Global with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prenetics Global and Olink Holding.
Diversification Opportunities for Prenetics Global and Olink Holding
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prenetics and Olink is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Prenetics Global and Olink Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olink Holding AB and Prenetics Global 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 Prenetics Global are associated (or correlated) with Olink Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olink Holding AB has no effect on the direction of Prenetics Global i.e., Prenetics Global and Olink Holding go up and down completely randomly.
Pair Corralation between Prenetics Global and Olink Holding
Considering the 90-day investment horizon Prenetics Global is expected to generate 10.72 times more return on investment than Olink Holding. However, Prenetics Global is 10.72 times more volatile than Olink Holding AB. It trades about 0.04 of its potential returns per unit of risk. Olink Holding AB is currently generating about 0.03 per unit of risk. If you would invest 2,745 in Prenetics Global on August 24, 2024 and sell it today you would lose (2,303) from holding Prenetics Global or give up 83.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.85% |
| Values | Daily Returns |
Prenetics Global vs. Olink Holding AB
Performance |
| Timeline |
| Prenetics Global |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Prenetics Global and Olink Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prenetics Global and Olink Holding
The main advantage of trading using opposite Prenetics Global and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prenetics Global position performs unexpectedly, Olink Holding 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 Olink Holding will offset losses from the drop in Olink Holding's long position.| Prenetics Global vs. Neogen | Prenetics Global vs. Qiagen NV | Prenetics Global vs. Aclaris Therapeutics | Prenetics Global vs. Fonar |
| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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