Correlation Between HTG Molecular and ISpecimen

Can any of the company-specific risk be diversified away by investing in both HTG Molecular and ISpecimen 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 ISpecimen 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 iSpecimen, you can compare the effects of market volatilities on HTG Molecular and ISpecimen 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 ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of HTG Molecular and ISpecimen.

Diversification Opportunities for HTG Molecular and ISpecimen

0.43

Correlation Coefficient

HTG Molecular  ISpecimen

Very weak diversification

The 3 months correlation between HTG and ISpecimen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding HTG Molecular Diagnostics and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of HTG Molecular i.e., HTG Molecular and ISpecimen go up and down completely randomly.

Pair Corralation between HTG Molecular and ISpecimen

If you would invest  57.00  in HTG Molecular Diagnostics on September 5, 2024 and sell it today you would earn a total of  0.00  from holding HTG Molecular Diagnostics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.55%
Values	Daily Returns

HTG Molecular Diagnostics  vs.  iSpecimen

HTG Molecular Diagnostics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HTG Molecular Diagnostics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, HTG Molecular is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

iSpecimen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iSpecimen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ISpecimen is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with HTG Molecular and ISpecimen

The main advantage of trading using opposite HTG Molecular and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HTG Molecular position performs unexpectedly, ISpecimen 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 ISpecimen will offset losses from the drop in ISpecimen's long position.

The idea behind HTG Molecular Diagnostics and iSpecimen 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.

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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.