Correlation Between Alphabet and ISpecimen

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

By analyzing existing cross correlation between Alphabet Inc Class C and iSpecimen, you can compare the effects of market volatilities on Alphabet and ISpecimen 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 Alphabet with a short position of ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and ISpecimen.

Diversification Opportunities for Alphabet and ISpecimen

0.09

Correlation Coefficient

Alphabet  ISpecimen

Significant diversification

The 3 months correlation between Alphabet and ISpecimen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc Class C and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen and Alphabet 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 Alphabet Inc Class C are associated (or correlated) with ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Alphabet i.e., Alphabet and ISpecimen go up and down completely randomly.

Pair Corralation between Alphabet and ISpecimen

Given the investment horizon of 90 days Alphabet is expected to generate 2.55 times less return on investment than ISpecimen. But when comparing it to its historical volatility, Alphabet Inc Class C is 13.75 times less risky than ISpecimen. It trades about 0.28 of its potential returns per unit of risk. iSpecimen is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  112.00  in iSpecimen on July 23, 2025 and sell it today you would lose (30.00) from holding iSpecimen or give up 26.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alphabet Inc Class C  vs.  iSpecimen

Alphabet Class C

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet Inc Class C are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Alphabet reported solid returns over the last few months and may actually be approaching a breakup point.

iSpecimen

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in iSpecimen are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, ISpecimen exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alphabet and ISpecimen

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

The idea behind Alphabet Inc Class C and iSpecimen 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.