Correlation Between Fonar and HTG Molecular
Can any of the company-specific risk be diversified away by investing in both Fonar 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 Fonar and HTG Molecular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonar and HTG Molecular Diagnostics, you can compare the effects of market volatilities on Fonar 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 Fonar with a short position of HTG Molecular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonar and HTG Molecular.
Diversification Opportunities for Fonar and HTG Molecular
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fonar and HTG is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fonar 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 Fonar 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 Fonar 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 Fonar i.e., Fonar and HTG Molecular go up and down completely randomly.
Pair Corralation between Fonar and HTG Molecular
Given the investment horizon of 90 days Fonar is expected to generate 27.74 times less return on investment than HTG Molecular. But when comparing it to its historical volatility, Fonar is 8.16 times less risky than HTG Molecular. It trades about 0.0 of its potential returns per unit of risk. HTG Molecular Diagnostics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 360.00 in HTG Molecular Diagnostics on August 26, 2024 and sell it today you would lose (303.00) from holding HTG Molecular Diagnostics or give up 84.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.99% |
| Values | Daily Returns |
Fonar vs. HTG Molecular Diagnostics
Performance |
| Timeline |
| Fonar |
| HTG Molecular Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fonar and HTG Molecular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonar and HTG Molecular
The main advantage of trading using opposite Fonar and HTG Molecular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar 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.| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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