Correlation Between IQVIA Holdings and Olink Holding

Can any of the company-specific risk be diversified away by investing in both IQVIA Holdings 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 IQVIA Holdings and Olink Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IQVIA Holdings and Olink Holding AB, you can compare the effects of market volatilities on IQVIA Holdings 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 IQVIA Holdings with a short position of Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQVIA Holdings and Olink Holding.

Diversification Opportunities for IQVIA Holdings and Olink Holding

-0.87

Correlation Coefficient

IQVIA Holdings  Olink Holding

Pay attention - limited upside

The 3 months correlation between IQVIA and Olink is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding IQVIA Holdings 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 IQVIA Holdings 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 IQVIA Holdings 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 IQVIA Holdings i.e., IQVIA Holdings and Olink Holding go up and down completely randomly.

Pair Corralation between IQVIA Holdings and Olink Holding

If you would invest  2,608  in Olink Holding AB on September 21, 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	Significant
Accuracy	2.33%
Values	Daily Returns

IQVIA Holdings  vs.  Olink Holding AB

IQVIA Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IQVIA Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Olink Holding AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Olink Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Olink Holding is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with IQVIA Holdings and Olink Holding

The main advantage of trading using opposite IQVIA Holdings and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQVIA Holdings 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.

The idea behind IQVIA Holdings and Olink Holding AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.