Correlation Between Olink Holding and Personalis

Can any of the company-specific risk be diversified away by investing in both Olink Holding and Personalis 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 Personalis 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 Personalis, you can compare the effects of market volatilities on Olink Holding and Personalis 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 Personalis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olink Holding and Personalis.

Diversification Opportunities for Olink Holding and Personalis

-0.74

Correlation Coefficient

Olink Holding  Personalis

Pay attention - limited upside

The 3 months correlation between Olink and Personalis is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Olink Holding AB and Personalis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personalis 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 Personalis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personalis has no effect on the direction of Olink Holding i.e., Olink Holding and Personalis go up and down completely randomly.

Pair Corralation between Olink Holding and Personalis

If you would invest  2,608  in Olink Holding AB on August 30, 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	Weak
Accuracy	1.56%
Values	Daily Returns

Olink Holding AB  vs.  Personalis

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.

Personalis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Personalis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Olink Holding and Personalis

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

The idea behind Olink Holding AB and Personalis 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.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.