Correlation Between HTG Molecular and Olink Holding
Can any of the company-specific risk be diversified away by investing in both HTG Molecular and Olink Holding 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 Olink Holding 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 Olink Holding AB, you can compare the effects of market volatilities on HTG Molecular and Olink Holding 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 Olink Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of HTG Molecular and Olink Holding.
Diversification Opportunities for HTG Molecular and Olink Holding
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HTG and Olink is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding HTG Molecular Diagnostics and Olink Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olink Holding AB 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 Olink Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olink Holding AB has no effect on the direction of HTG Molecular i.e., HTG Molecular and Olink Holding go up and down completely randomly.
Pair Corralation between HTG Molecular and Olink Holding
Given the investment horizon of 90 days HTG Molecular Diagnostics is expected to generate 4.17 times more return on investment than Olink Holding. However, HTG Molecular is 4.17 times more volatile than Olink Holding AB. It trades about 0.01 of its potential returns per unit of risk. Olink Holding AB is currently generating about 0.03 per unit of risk. If you would invest 298.00 in HTG Molecular Diagnostics on August 29, 2024 and sell it today you would lose (241.00) from holding HTG Molecular Diagnostics or give up 80.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 39.2% |
| Values | Daily Returns |
HTG Molecular Diagnostics vs. Olink Holding AB
Performance |
| Timeline |
| HTG Molecular Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Olink Holding AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HTG Molecular and Olink Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HTG Molecular and Olink Holding
The main advantage of trading using opposite HTG Molecular and Olink Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HTG Molecular position performs unexpectedly, Olink Holding 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 Olink Holding will offset losses from the drop in Olink Holding's long position.| HTG Molecular vs. bioAffinity Technologies, | HTG Molecular vs. Psychemedics | HTG Molecular vs. Precipio | HTG Molecular vs. Intelligent Bio Solutions |
| Olink Holding vs. Fonar | Olink Holding vs. Burning Rock Biotech | Olink Holding vs. Sera Prognostics | Olink Holding vs. Psychemedics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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