Correlation Between Precipio and Olink Holding
Can any of the company-specific risk be diversified away by investing in both Precipio 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 Precipio and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Precipio and Olink Holding AB, you can compare the effects of market volatilities on Precipio 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 Precipio with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Precipio and Olink Holding.
Diversification Opportunities for Precipio and Olink Holding
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Precipio and Olink is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Precipio 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 Precipio 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 Precipio 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 Precipio i.e., Precipio and Olink Holding go up and down completely randomly.
Pair Corralation between Precipio and Olink Holding
If you would invest 2,608 in Olink Holding AB on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Olink Holding AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Precipio vs. Olink Holding AB
Performance |
| Timeline |
| Precipio |
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Precipio and Olink Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Precipio and Olink Holding
The main advantage of trading using opposite Precipio and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Precipio 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.| Precipio vs. Biodesix | Precipio vs. Sera Prognostics | Precipio vs. Applied DNA Sciences | Precipio vs. Caredx Inc |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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