Correlation Between Mainz Biomed and ISpecimen

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

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

Diversification Opportunities for Mainz Biomed and ISpecimen

0.73

Correlation Coefficient

Mainz Biomed  ISpecimen

Poor diversification

The 3 months correlation between Mainz and ISpecimen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mainz Biomed BV and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen and Mainz Biomed 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 Mainz Biomed BV 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 Mainz Biomed i.e., Mainz Biomed and ISpecimen go up and down completely randomly.

Pair Corralation between Mainz Biomed and ISpecimen

Given the investment horizon of 90 days Mainz Biomed BV is expected to under-perform the ISpecimen. In addition to that, Mainz Biomed is 1.18 times more volatile than iSpecimen. It trades about -0.09 of its total potential returns per unit of risk. iSpecimen is currently generating about 0.03 per unit of volatility. If you would invest  125.00  in iSpecimen on May 2, 2025 and sell it today you would earn a total of  4.00  from holding iSpecimen or generate 3.2% return on investment over 90 days.

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

Mainz Biomed BV  vs.  iSpecimen

Mainz Biomed BV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mainz Biomed BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Mainz Biomed and ISpecimen

The main advantage of trading using opposite Mainz Biomed and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainz Biomed 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 Mainz Biomed BV 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.

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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.