Correlation Between Champions Oncology and GH Research
Can any of the company-specific risk be diversified away by investing in both Champions Oncology and GH Research 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 Champions Oncology and GH Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champions Oncology and GH Research PLC, you can compare the effects of market volatilities on Champions Oncology and GH Research 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 Champions Oncology with a short position of GH Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champions Oncology and GH Research.
Diversification Opportunities for Champions Oncology and GH Research
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Champions and GHRS is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Champions Oncology and GH Research PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GH Research PLC and Champions Oncology 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 Champions Oncology are associated (or correlated) with GH Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GH Research PLC has no effect on the direction of Champions Oncology i.e., Champions Oncology and GH Research go up and down completely randomly.
Pair Corralation between Champions Oncology and GH Research
Given the investment horizon of 90 days Champions Oncology is expected to generate 40.93 times less return on investment than GH Research. But when comparing it to its historical volatility, Champions Oncology is 1.1 times less risky than GH Research. It trades about 0.0 of its potential returns per unit of risk. GH Research PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,140 in GH Research PLC on August 25, 2024 and sell it today you would lose (213.00) from holding GH Research PLC or give up 18.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champions Oncology vs. GH Research PLC
Performance |
| Timeline |
| Champions Oncology |
| GH Research PLC |
Champions Oncology and GH Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champions Oncology and GH Research
The main advantage of trading using opposite Champions Oncology and GH Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champions Oncology position performs unexpectedly, GH Research 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 GH Research will offset losses from the drop in GH Research's long position.| Champions Oncology vs. Molecular Partners AG | Champions Oncology vs. MediciNova | Champions Oncology vs. Anebulo Pharmaceuticals | Champions Oncology vs. Shattuck Labs |
| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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