Correlation Between Agile Thrpe and Guardion Health
Can any of the company-specific risk be diversified away by investing in both Agile Thrpe 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 Agile Thrpe and Guardion Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agile Thrpe and Guardion Health Sciences, you can compare the effects of market volatilities on Agile Thrpe 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 Agile Thrpe with a short position of Guardion Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Thrpe and Guardion Health.
Diversification Opportunities for Agile Thrpe and Guardion Health
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agile and Guardion is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agile Thrpe 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 Agile Thrpe 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 Agile Thrpe 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 Agile Thrpe i.e., Agile Thrpe and Guardion Health go up and down completely randomly.
Pair Corralation between Agile Thrpe and Guardion Health
Given the investment horizon of 90 days Agile Thrpe is expected to under-perform the Guardion Health. But the stock apears to be less risky and, when comparing its historical volatility, Agile Thrpe is 1.25 times less risky than Guardion Health. The stock trades about -0.24 of its potential returns per unit of risk. The Guardion Health Sciences is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Guardion Health Sciences on November 1, 2024 and sell it today you would earn a total of 79.00 from holding Guardion Health Sciences or generate 31.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 26.53% |
| Values | Daily Returns |
Agile Thrpe vs. Guardion Health Sciences
Performance |
| Timeline |
| Agile Thrpe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agile Thrpe and Guardion Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agile Thrpe and Guardion Health
The main advantage of trading using opposite Agile Thrpe and Guardion Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Thrpe 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.| Agile Thrpe vs. Assertio Therapeutics | Agile Thrpe vs. Amneal Pharmaceuticals, Class | Agile Thrpe vs. Lifecore Biomedical | Agile Thrpe vs. Alpha Teknova |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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