Correlation Between Volitionrx and ISpecimen

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

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

Diversification Opportunities for Volitionrx and ISpecimen

-0.37

Correlation Coefficient

Volitionrx  ISpecimen

Very good diversification

The 3 months correlation between Volitionrx and ISpecimen is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Volitionrx and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen and Volitionrx 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 Volitionrx 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 Volitionrx i.e., Volitionrx and ISpecimen go up and down completely randomly.

Pair Corralation between Volitionrx and ISpecimen

Given the investment horizon of 90 days Volitionrx is expected to generate 27.88 times less return on investment than ISpecimen. But when comparing it to its historical volatility, Volitionrx is 8.27 times less risky than ISpecimen. It trades about 0.05 of its potential returns per unit of risk. iSpecimen is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  71.00  in iSpecimen on July 4, 2025 and sell it today you would earn a total of  52.00  from holding iSpecimen or generate 73.24% return on investment over 90 days.

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

Volitionrx  vs.  iSpecimen

Volitionrx

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Volitionrx are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Volitionrx may actually be approaching a critical reversion point that can send shares even higher in November 2025.

iSpecimen

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in iSpecimen are ranked lower than 7 (%) 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.

Pair Trading with Volitionrx and ISpecimen

The main advantage of trading using opposite Volitionrx and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volitionrx 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 Volitionrx 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.