Correlation Between ISpecimen and Pop Culture

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

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

Diversification Opportunities for ISpecimen and Pop Culture

0.58

Correlation Coefficient

ISpecimen  Pop Culture

Very weak diversification

The 3 months correlation between ISpecimen and Pop is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and Pop Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pop Culture Group 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 Pop Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pop Culture Group has no effect on the direction of ISpecimen i.e., ISpecimen and Pop Culture go up and down completely randomly.

Pair Corralation between ISpecimen and Pop Culture

Given the investment horizon of 90 days ISpecimen is expected to generate 8.0 times less return on investment than Pop Culture. But when comparing it to its historical volatility, iSpecimen is 2.54 times less risky than Pop Culture. It trades about 0.03 of its potential returns per unit of risk. Pop Culture Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  59.00  in Pop Culture Group on May 21, 2025 and sell it today you would earn a total of  26.00  from holding Pop Culture Group or generate 44.07% return on investment over 90 days.

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

iSpecimen  vs.  Pop Culture Group

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 weak basic indicators, ISpecimen exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pop Culture Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pop Culture Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Pop Culture reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ISpecimen and Pop Culture

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

The idea behind iSpecimen and Pop Culture Group 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.