Correlation Between Standard Biotools and ISpecimen

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

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

Diversification Opportunities for Standard Biotools and ISpecimen

-0.39

Correlation Coefficient

Standard Biotools  ISpecimen

Very good diversification

The 3 months correlation between Standard and ISpecimen is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Standard Biotools and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen and Standard Biotools 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 Standard Biotools 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 Standard Biotools i.e., Standard Biotools and ISpecimen go up and down completely randomly.

Pair Corralation between Standard Biotools and ISpecimen

Considering the 90-day investment horizon Standard Biotools is expected to generate 1.23 times more return on investment than ISpecimen. However, Standard Biotools is 1.23 times more volatile than iSpecimen. It trades about 0.09 of its potential returns per unit of risk. iSpecimen is currently generating about -0.03 per unit of risk. If you would invest  116.00  in Standard Biotools on April 29, 2025 and sell it today you would earn a total of  26.00  from holding Standard Biotools or generate 22.41% return on investment over 90 days.

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

Standard Biotools  vs.  iSpecimen

Standard Biotools

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Standard Biotools are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Standard Biotools sustained solid returns over the last few months and may actually be approaching a breakup point.

iSpecimen

Risk-Adjusted Performance

Very Weak

Over the last 90 days iSpecimen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Standard Biotools and ISpecimen

The main advantage of trading using opposite Standard Biotools and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Biotools 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 Standard Biotools 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.