Correlation Between Phytohealth Corp and G Shank
Can any of the company-specific risk be diversified away by investing in both Phytohealth Corp and G Shank 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 Phytohealth Corp and G Shank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phytohealth Corp and G Shank Enterprise Co, you can compare the effects of market volatilities on Phytohealth Corp and G Shank 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 Phytohealth Corp with a short position of G Shank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phytohealth Corp and G Shank.
Diversification Opportunities for Phytohealth Corp and G Shank
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Phytohealth and 2476 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Phytohealth Corp and G Shank Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Shank Enterprise and Phytohealth 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 Phytohealth Corp are associated (or correlated) with G Shank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Shank Enterprise has no effect on the direction of Phytohealth Corp i.e., Phytohealth Corp and G Shank go up and down completely randomly.
Pair Corralation between Phytohealth Corp and G Shank
Assuming the 90 days trading horizon Phytohealth Corp is expected to under-perform the G Shank. But the stock apears to be less risky and, when comparing its historical volatility, Phytohealth Corp is 1.14 times less risky than G Shank. The stock trades about -0.01 of its potential returns per unit of risk. The G Shank Enterprise Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,622 in G Shank Enterprise Co on September 2, 2024 and sell it today you would earn a total of 4,028 from holding G Shank Enterprise Co or generate 87.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Phytohealth Corp vs. G Shank Enterprise Co
Performance |
| Timeline |
| Phytohealth Corp |
| G Shank Enterprise |
Phytohealth Corp and G Shank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phytohealth Corp and G Shank
The main advantage of trading using opposite Phytohealth Corp and G Shank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phytohealth Corp position performs unexpectedly, G Shank 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 G Shank will offset losses from the drop in G Shank's long position.| Phytohealth Corp vs. CHC Healthcare Group | Phytohealth Corp vs. GenMont Biotech | Phytohealth Corp vs. Sinphar Pharmaceutical Co | Phytohealth Corp vs. Abnova Taiwan Corp |
| G Shank vs. BES Engineering Co | G Shank vs. Continental Holdings Corp | G Shank vs. Kee Tai Properties | G Shank vs. Hung Sheng Construction |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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