Correlation Between HTG Molecular and Intelligent Bio

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

Diversification Opportunities for HTG Molecular and Intelligent Bio

0.27

Correlation Coefficient

HTG Molecular  Intelligent Bio

Modest diversification

The 3 months correlation between HTG and Intelligent is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding HTG Molecular Diagnostics and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of HTG Molecular i.e., HTG Molecular and Intelligent Bio go up and down completely randomly.

Pair Corralation between HTG Molecular and Intelligent Bio

If you would invest  114.00  in Intelligent Bio Solutions on September 21, 2024 and sell it today you would earn a total of  16.00  from holding Intelligent Bio Solutions or generate 14.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.18%
Values	Daily Returns

HTG Molecular Diagnostics  vs.  Intelligent Bio Solutions

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.

Intelligent Bio Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelligent Bio Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with HTG Molecular and Intelligent Bio

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

The idea behind HTG Molecular Diagnostics and Intelligent Bio Solutions 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.