Correlation Between Aeterna Zentaris and Guardion Health
Can any of the company-specific risk be diversified away by investing in both Aeterna Zentaris and Guardion Health 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 Aeterna Zentaris and Guardion Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeterna Zentaris and Guardion Health Sciences, you can compare the effects of market volatilities on Aeterna Zentaris and Guardion Health 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 Aeterna Zentaris with a short position of Guardion Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeterna Zentaris and Guardion Health.
Diversification Opportunities for Aeterna Zentaris and Guardion Health
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aeterna and Guardion is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aeterna Zentaris and Guardion Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardion Health Sciences and Aeterna Zentaris 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 Aeterna Zentaris are associated (or correlated) with Guardion Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardion Health Sciences has no effect on the direction of Aeterna Zentaris i.e., Aeterna Zentaris and Guardion Health go up and down completely randomly.
Pair Corralation between Aeterna Zentaris and Guardion Health
Given the investment horizon of 90 days Aeterna Zentaris is expected to under-perform the Guardion Health. But the stock apears to be less risky and, when comparing its historical volatility, Aeterna Zentaris is 1.3 times less risky than Guardion Health. The stock trades about -0.09 of its potential returns per unit of risk. The Guardion Health Sciences is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 311.00 in Guardion Health Sciences on August 29, 2024 and sell it today you would earn a total of 18.00 from holding Guardion Health Sciences or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 50.51% |
| Values | Daily Returns |
Aeterna Zentaris vs. Guardion Health Sciences
Performance |
| Timeline |
| Aeterna Zentaris |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aeterna Zentaris and Guardion Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeterna Zentaris and Guardion Health
The main advantage of trading using opposite Aeterna Zentaris and Guardion Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeterna Zentaris position performs unexpectedly, Guardion Health 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 Guardion Health will offset losses from the drop in Guardion Health's long position.| Aeterna Zentaris vs. Pulmatrix | Aeterna Zentaris vs. Bio Path Holdings | Aeterna Zentaris vs. Moleculin Biotech | Aeterna Zentaris vs. Adial Pharmaceuticals |
| Guardion Health vs. Biofrontera | Guardion Health vs. Shuttle Pharmaceuticals | Guardion Health vs. Akanda Corp | Guardion Health vs. China Pharma Holdings |
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.
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