Correlation Between Neola Medical and Link Prop
Can any of the company-specific risk be diversified away by investing in both Neola Medical and Link Prop 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 Neola Medical and Link Prop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neola Medical AB and Link Prop Investment, you can compare the effects of market volatilities on Neola Medical and Link Prop 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 Neola Medical with a short position of Link Prop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neola Medical and Link Prop.
Diversification Opportunities for Neola Medical and Link Prop
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neola and Link is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Neola Medical AB and Link Prop Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Prop Investment and Neola Medical 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 Neola Medical AB are associated (or correlated) with Link Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Prop Investment has no effect on the direction of Neola Medical i.e., Neola Medical and Link Prop go up and down completely randomly.
Pair Corralation between Neola Medical and Link Prop
Assuming the 90 days trading horizon Neola Medical AB is expected to under-perform the Link Prop. In addition to that, Neola Medical is 3.04 times more volatile than Link Prop Investment. It trades about -0.3 of its total potential returns per unit of risk. Link Prop Investment is currently generating about 0.02 per unit of volatility. If you would invest 14,601 in Link Prop Investment on August 31, 2025 and sell it today you would earn a total of 99.00 from holding Link Prop Investment or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neola Medical AB vs. Link Prop Investment
Performance |
| Timeline |
| Neola Medical AB |
| Link Prop Investment |
Neola Medical and Link Prop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neola Medical and Link Prop
The main advantage of trading using opposite Neola Medical and Link Prop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neola Medical position performs unexpectedly, Link Prop 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 Link Prop will offset losses from the drop in Link Prop's long position.| Neola Medical vs. FormPipe Software AB | Neola Medical vs. Qiiwi Games AB | Neola Medical vs. OptiCept Technologies AB | Neola Medical vs. Serstech AB |
| Link Prop vs. S2Medical AB | Link Prop vs. Upsales Technology AB | Link Prop vs. 24SevenOffice Scandinavia AB | Link Prop vs. Neola Medical AB |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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