Correlation Between Sera Prognostics and Olink Holding
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics 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 Sera Prognostics and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Olink Holding AB, you can compare the effects of market volatilities on Sera Prognostics 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 Sera Prognostics with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Olink Holding.
Diversification Opportunities for Sera Prognostics and Olink Holding
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sera and Olink is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics i.e., Sera Prognostics and Olink Holding go up and down completely randomly.
Pair Corralation between Sera Prognostics and Olink Holding
Given the investment horizon of 90 days Sera Prognostics is expected to under-perform the Olink Holding. In addition to that, Sera Prognostics is 3.39 times more volatile than Olink Holding AB. It trades about -0.09 of its total potential returns per unit of risk. Olink Holding AB is currently generating about 0.13 per unit of volatility. If you would invest 2,274 in Olink Holding AB on February 13, 2024 and sell it today you would earn a total of 77.00 from holding Olink Holding AB or generate 3.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sera Prognostics vs. Olink Holding AB
Performance |
Timeline |
Sera Prognostics |
Olink Holding AB |
Sera Prognostics and Olink Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sera Prognostics and Olink Holding
The main advantage of trading using opposite Sera Prognostics and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics 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.Sera Prognostics vs. Twist Bioscience Corp | Sera Prognostics vs. Olink Holding AB | Sera Prognostics vs. Fonar |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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