Correlation Between OncoCyte Corp and HTG Molecular
Can any of the company-specific risk be diversified away by investing in both OncoCyte Corp 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 OncoCyte Corp and HTG Molecular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OncoCyte Corp and HTG Molecular Diagnostics, you can compare the effects of market volatilities on OncoCyte Corp 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 OncoCyte Corp with a short position of HTG Molecular. Check out your portfolio center. Please also check ongoing floating volatility patterns of OncoCyte Corp and HTG Molecular.
Diversification Opportunities for OncoCyte Corp and HTG Molecular
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OncoCyte and HTG is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding OncoCyte Corp 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 OncoCyte Corp 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 OncoCyte Corp 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 OncoCyte Corp i.e., OncoCyte Corp and HTG Molecular go up and down completely randomly.
Pair Corralation between OncoCyte Corp and HTG Molecular
Considering the 90-day investment horizon OncoCyte Corp is expected to generate 0.46 times more return on investment than HTG Molecular. However, OncoCyte Corp is 2.18 times less risky than HTG Molecular. It trades about -0.01 of its potential returns per unit of risk. HTG Molecular Diagnostics is currently generating about -0.07 per unit of risk. If you would invest 840.00 in OncoCyte Corp on September 3, 2024 and sell it today you would lose (596.00) from holding OncoCyte Corp or give up 70.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
OncoCyte Corp vs. HTG Molecular Diagnostics
Performance |
| Timeline |
| OncoCyte Corp |
| HTG Molecular Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OncoCyte Corp and HTG Molecular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OncoCyte Corp and HTG Molecular
The main advantage of trading using opposite OncoCyte Corp and HTG Molecular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OncoCyte Corp 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.The idea behind OncoCyte Corp and HTG Molecular Diagnostics 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.| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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