Correlation Between Olink Holding and ENDRA Life

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

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

Diversification Opportunities for Olink Holding and ENDRA Life

0.0

Correlation Coefficient

Olink Holding  ENDRA Life

Pay attention - limited upside

The 3 months correlation between Olink and ENDRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and ENDRA Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENDRA Life Sciences and Olink Holding 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 Olink Holding AB are associated (or correlated) with ENDRA Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENDRA Life Sciences has no effect on the direction of Olink Holding i.e., Olink Holding and ENDRA Life go up and down completely randomly.

Pair Corralation between Olink Holding and ENDRA Life

If you would invest (100.00) in Olink Holding AB on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Olink Holding AB or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Olink Holding AB  vs.  ENDRA Life Sciences

Olink Holding AB

Risk-Adjusted Performance

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.

ENDRA Life Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days ENDRA Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Olink Holding and ENDRA Life

The main advantage of trading using opposite Olink Holding and ENDRA Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olink Holding position performs unexpectedly, ENDRA Life 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 ENDRA Life will offset losses from the drop in ENDRA Life's long position.

The idea behind Olink Holding AB and ENDRA Life Sciences 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.