Correlation Between ISpecimen and Bioqual

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

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

Diversification Opportunities for ISpecimen and Bioqual

0.15

Correlation Coefficient

ISpecimen  Bioqual

Average diversification

The 3 months correlation between ISpecimen and Bioqual is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and Bioqual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioqual and ISpecimen 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 iSpecimen are associated (or correlated) with Bioqual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioqual has no effect on the direction of ISpecimen i.e., ISpecimen and Bioqual go up and down completely randomly.

Pair Corralation between ISpecimen and Bioqual

Given the investment horizon of 90 days iSpecimen is expected to generate 13.47 times more return on investment than Bioqual. However, ISpecimen is 13.47 times more volatile than Bioqual. It trades about 0.04 of its potential returns per unit of risk. Bioqual is currently generating about -0.1 per unit of risk. If you would invest  67.00  in iSpecimen on September 4, 2025 and sell it today you would lose (25.00) from holding iSpecimen or give up 37.31% of portfolio value over 90 days.

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

iSpecimen  vs.  Bioqual

iSpecimen

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iSpecimen are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, ISpecimen exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bioqual

Risk-Adjusted Performance

Weakest

Over the last 90 days Bioqual has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with ISpecimen and Bioqual

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

The idea behind iSpecimen and Bioqual 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 Global Correlations module to find global opportunities by holding instruments from different markets.