Correlation Between Boule Diagnostics and Prostatype Genomics

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

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

Diversification Opportunities for Boule Diagnostics and Prostatype Genomics

-0.38

Correlation Coefficient

Boule Diagnostics  Prostatype Genomics

Very good diversification

The 3 months correlation between Boule and Prostatype is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Boule Diagnostics AB and Prostatype Genomics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prostatype Genomics and Boule Diagnostics 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 Boule Diagnostics AB are associated (or correlated) with Prostatype Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prostatype Genomics has no effect on the direction of Boule Diagnostics i.e., Boule Diagnostics and Prostatype Genomics go up and down completely randomly.

Pair Corralation between Boule Diagnostics and Prostatype Genomics

Assuming the 90 days trading horizon Boule Diagnostics AB is expected to under-perform the Prostatype Genomics. But the stock apears to be less risky and, when comparing its historical volatility, Boule Diagnostics AB is 2.55 times less risky than Prostatype Genomics. The stock trades about -0.04 of its potential returns per unit of risk. The Prostatype Genomics AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  207.00  in Prostatype Genomics AB on April 22, 2025 and sell it today you would lose (107.00) from holding Prostatype Genomics AB or give up 51.69% of portfolio value over 90 days.

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

Boule Diagnostics AB  vs.  Prostatype Genomics AB

Boule Diagnostics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boule Diagnostics AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Prostatype Genomics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prostatype Genomics AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Boule Diagnostics and Prostatype Genomics

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

The idea behind Boule Diagnostics AB and Prostatype Genomics AB 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.