Correlation Between HOB Biotech and Align Technology
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By analyzing existing cross correlation between HOB Biotech Group and Align Technology, you can compare the effects of market volatilities on HOB Biotech and Align Technology 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 HOB Biotech with a short position of Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and Align Technology.
Diversification Opportunities for HOB Biotech and Align Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HOB and Align is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology and HOB Biotech 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 HOB Biotech Group are associated (or correlated) with Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of HOB Biotech i.e., HOB Biotech and Align Technology go up and down completely randomly.
Pair Corralation between HOB Biotech and Align Technology
Assuming the 90 days trading horizon HOB Biotech Group is expected to generate 1.92 times more return on investment than Align Technology. However, HOB Biotech is 1.92 times more volatile than Align Technology. It trades about 0.2 of its potential returns per unit of risk. Align Technology is currently generating about 0.11 per unit of risk. If you would invest 13,320 in HOB Biotech Group on September 7, 2025 and sell it today you would earn a total of 7,140 from holding HOB Biotech Group or generate 53.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.19% |
| Values | Daily Returns |
HOB Biotech Group vs. Align Technology
Performance |
| Timeline |
| HOB Biotech Group |
| Align Technology |
HOB Biotech and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and Align Technology
The main advantage of trading using opposite HOB Biotech and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| HOB Biotech vs. Guangzhou Jinyi Media | HOB Biotech vs. Duzhe Publishing Media | HOB Biotech vs. Thinkingdom Media Group | HOB Biotech vs. Mega info Media CoLtd |
| Align Technology vs. Trip Technologies | Align Technology vs. Pintec Technology Holdings | Align Technology vs. Axcelis Technologies | Align Technology vs. Pebblebrook Hotel Trust |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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