Correlation Between Burning Rock and HTG Molecular
Can any of the company-specific risk be diversified away by investing in both Burning Rock and HTG Molecular 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 Burning Rock and HTG Molecular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burning Rock Biotech and HTG Molecular Diagnostics, you can compare the effects of market volatilities on Burning Rock and HTG Molecular 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 Burning Rock with a short position of HTG Molecular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and HTG Molecular.
Diversification Opportunities for Burning Rock and HTG Molecular
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Burning and HTG is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and HTG Molecular Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HTG Molecular Diagnostics and Burning Rock 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 Burning Rock Biotech are associated (or correlated) with HTG Molecular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HTG Molecular Diagnostics has no effect on the direction of Burning Rock i.e., Burning Rock and HTG Molecular go up and down completely randomly.
Pair Corralation between Burning Rock and HTG Molecular
If you would invest 715.00 in Burning Rock Biotech on August 29, 2024 and sell it today you would lose (184.00) from holding Burning Rock Biotech or give up 25.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Burning Rock Biotech vs. HTG Molecular Diagnostics
Performance |
| Timeline |
| Burning Rock Biotech |
| HTG Molecular Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Burning Rock and HTG Molecular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and HTG Molecular
The main advantage of trading using opposite Burning Rock and HTG Molecular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock position performs unexpectedly, HTG Molecular 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 HTG Molecular will offset losses from the drop in HTG Molecular's long position.| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
| HTG Molecular vs. bioAffinity Technologies, | HTG Molecular vs. Psychemedics | HTG Molecular vs. Precipio | HTG Molecular vs. Intelligent Bio Solutions |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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