Correlation Between WORK Medical and Castle Biosciences
Can any of the company-specific risk be diversified away by investing in both WORK Medical and Castle Biosciences 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 WORK Medical and Castle Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WORK Medical Technology and Castle Biosciences, you can compare the effects of market volatilities on WORK Medical and Castle Biosciences 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 WORK Medical with a short position of Castle Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of WORK Medical and Castle Biosciences.
Diversification Opportunities for WORK Medical and Castle Biosciences
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WORK and Castle is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding WORK Medical Technology and Castle Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castle Biosciences and WORK 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 WORK Medical Technology are associated (or correlated) with Castle Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castle Biosciences has no effect on the direction of WORK Medical i.e., WORK Medical and Castle Biosciences go up and down completely randomly.
Pair Corralation between WORK Medical and Castle Biosciences
Considering the 90-day investment horizon WORK Medical is expected to generate 24.94 times less return on investment than Castle Biosciences. But when comparing it to its historical volatility, WORK Medical Technology is 2.82 times less risky than Castle Biosciences. It trades about 0.01 of its potential returns per unit of risk. Castle Biosciences is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,012 in Castle Biosciences on June 9, 2025 and sell it today you would earn a total of 344.00 from holding Castle Biosciences or generate 17.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WORK Medical Technology vs. Castle Biosciences
Performance |
| Timeline |
| WORK Medical Technology |
| Castle Biosciences |
WORK Medical and Castle Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WORK Medical and Castle Biosciences
The main advantage of trading using opposite WORK Medical and Castle Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WORK Medical position performs unexpectedly, Castle Biosciences 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 Castle Biosciences will offset losses from the drop in Castle Biosciences' long position.| WORK Medical vs. Afya | WORK Medical vs. Xtant Medical Holdings | WORK Medical vs. Skillful Craftsman Education | WORK Medical vs. Scholastic |
| Castle Biosciences vs. Personalis | Castle Biosciences vs. Sera Prognostics | Castle Biosciences vs. CareDx Inc | Castle Biosciences vs. DarioHealth Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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