Correlation Between GH Research and Biovaxys Technology
Can any of the company-specific risk be diversified away by investing in both GH Research and Biovaxys Technology 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 GH Research and Biovaxys Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GH Research PLC and Biovaxys Technology Corp, you can compare the effects of market volatilities on GH Research and Biovaxys Technology 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 GH Research with a short position of Biovaxys Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GH Research and Biovaxys Technology.
Diversification Opportunities for GH Research and Biovaxys Technology
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between GHRS and Biovaxys is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GH Research PLC and Biovaxys Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biovaxys Technology Corp and GH Research 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 GH Research PLC are associated (or correlated) with Biovaxys Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biovaxys Technology Corp has no effect on the direction of GH Research i.e., GH Research and Biovaxys Technology go up and down completely randomly.
Pair Corralation between GH Research and Biovaxys Technology
Given the investment horizon of 90 days GH Research PLC is expected to generate 0.71 times more return on investment than Biovaxys Technology. However, GH Research PLC is 1.42 times less risky than Biovaxys Technology. It trades about 0.22 of its potential returns per unit of risk. Biovaxys Technology Corp is currently generating about -0.1 per unit of risk. If you would invest 791.00 in GH Research PLC on November 3, 2024 and sell it today you would earn a total of 178.00 from holding GH Research PLC or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GH Research PLC vs. Biovaxys Technology Corp
Performance |
| Timeline |
| GH Research PLC |
| Biovaxys Technology Corp |
GH Research and Biovaxys Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GH Research and Biovaxys Technology
The main advantage of trading using opposite GH Research and Biovaxys Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GH Research position performs unexpectedly, Biovaxys Technology 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 Biovaxys Technology will offset losses from the drop in Biovaxys Technology's long position.| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
| Biovaxys Technology vs. Biotron Limited | Biovaxys Technology vs. biOasis Technologies | Biovaxys Technology vs. Covalon Technologies | Biovaxys Technology vs. Mosaic Immunoengineering |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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