Correlation Between OraSure Technologies and ImmuCell

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

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

Diversification Opportunities for OraSure Technologies and ImmuCell

0.59

Correlation Coefficient

OraSure Technologies  ImmuCell

Very weak diversification

The 3 months correlation between OraSure and ImmuCell is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding OraSure Technologies and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and OraSure Technologies 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 OraSure Technologies are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of OraSure Technologies i.e., OraSure Technologies and ImmuCell go up and down completely randomly.

Pair Corralation between OraSure Technologies and ImmuCell

Given the investment horizon of 90 days OraSure Technologies is expected to generate 2.24 times less return on investment than ImmuCell. But when comparing it to its historical volatility, OraSure Technologies is 1.45 times less risky than ImmuCell. It trades about 0.04 of its potential returns per unit of risk. ImmuCell is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  527.00  in ImmuCell on May 3, 2025 and sell it today you would earn a total of  73.00  from holding ImmuCell or generate 13.85% return on investment over 90 days.

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

OraSure Technologies  vs.  ImmuCell

OraSure Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OraSure Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, OraSure Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ImmuCell

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OraSure Technologies and ImmuCell

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

The idea behind OraSure Technologies and ImmuCell 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.