Correlation Between HTG Molecular and Genetron Holdings
Can any of the company-specific risk be diversified away by investing in both HTG Molecular and Genetron Holdings 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 HTG Molecular and Genetron Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HTG Molecular Diagnostics and Genetron Holdings, you can compare the effects of market volatilities on HTG Molecular and Genetron Holdings 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 HTG Molecular with a short position of Genetron Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HTG Molecular and Genetron Holdings.
Diversification Opportunities for HTG Molecular and Genetron Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between HTG and Genetron is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding HTG Molecular Diagnostics and Genetron Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genetron Holdings and HTG Molecular 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 HTG Molecular Diagnostics are associated (or correlated) with Genetron Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genetron Holdings has no effect on the direction of HTG Molecular i.e., HTG Molecular and Genetron Holdings go up and down completely randomly.
Pair Corralation between HTG Molecular and Genetron Holdings
Given the investment horizon of 90 days HTG Molecular Diagnostics is expected to under-perform the Genetron Holdings. In addition to that, HTG Molecular is 8.11 times more volatile than Genetron Holdings. It trades about 0.0 of its total potential returns per unit of risk. Genetron Holdings is currently generating about 0.08 per unit of volatility. If you would invest 90.00 in Genetron Holdings on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Genetron Holdings or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HTG Molecular Diagnostics vs. Genetron Holdings
Performance |
| Timeline |
| HTG Molecular Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HTG Molecular and Genetron Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HTG Molecular and Genetron Holdings
The main advantage of trading using opposite HTG Molecular and Genetron Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HTG Molecular position performs unexpectedly, Genetron Holdings 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 Genetron Holdings will offset losses from the drop in Genetron Holdings' long position.| HTG Molecular vs. bioAffinity Technologies, | HTG Molecular vs. Psychemedics | HTG Molecular vs. Precipio | HTG Molecular vs. Intelligent Bio Solutions |
| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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