Correlation Between Alimera Sciences and Guardion Health
Can any of the company-specific risk be diversified away by investing in both Alimera Sciences 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 Alimera Sciences and Guardion Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alimera Sciences and Guardion Health Sciences, you can compare the effects of market volatilities on Alimera Sciences 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 Alimera Sciences with a short position of Guardion Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimera Sciences and Guardion Health.
Diversification Opportunities for Alimera Sciences and Guardion Health
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alimera and Guardion is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Alimera Sciences 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 Alimera Sciences 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 Alimera Sciences 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 Alimera Sciences i.e., Alimera Sciences and Guardion Health go up and down completely randomly.
Pair Corralation between Alimera Sciences and Guardion Health
If you would invest 329.00 in Guardion Health Sciences on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Guardion Health Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alimera Sciences vs. Guardion Health Sciences
Performance |
| Timeline |
| Alimera Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alimera Sciences and Guardion Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimera Sciences and Guardion Health
The main advantage of trading using opposite Alimera Sciences and Guardion Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimera Sciences 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.| Alimera Sciences vs. Shuttle Pharmaceuticals | Alimera Sciences vs. Lifecore Biomedical | Alimera Sciences vs. Journey Medical Corp | Alimera Sciences vs. Organogenesis Holdings |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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