Correlation Between GH Research and MeiraGTx Holdings
Can any of the company-specific risk be diversified away by investing in both GH Research and MeiraGTx Holdings 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 MeiraGTx Holdings 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 MeiraGTx Holdings PLC, you can compare the effects of market volatilities on GH Research and MeiraGTx Holdings 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 MeiraGTx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GH Research and MeiraGTx Holdings.
Diversification Opportunities for GH Research and MeiraGTx Holdings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GHRS and MeiraGTx is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding GH Research PLC and MeiraGTx Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeiraGTx Holdings PLC 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 MeiraGTx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeiraGTx Holdings PLC has no effect on the direction of GH Research i.e., GH Research and MeiraGTx Holdings go up and down completely randomly.
Pair Corralation between GH Research and MeiraGTx Holdings
Given the investment horizon of 90 days GH Research PLC is expected to generate 1.67 times more return on investment than MeiraGTx Holdings. However, GH Research is 1.67 times more volatile than MeiraGTx Holdings PLC. It trades about 0.25 of its potential returns per unit of risk. MeiraGTx Holdings PLC is currently generating about -0.02 per unit of risk. If you would invest 709.00 in GH Research PLC on October 25, 2024 and sell it today you would earn a total of 171.00 from holding GH Research PLC or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GH Research PLC vs. MeiraGTx Holdings PLC
Performance |
| Timeline |
| GH Research PLC |
| MeiraGTx Holdings PLC |
GH Research and MeiraGTx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GH Research and MeiraGTx Holdings
The main advantage of trading using opposite GH Research and MeiraGTx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GH Research position performs unexpectedly, MeiraGTx Holdings 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 MeiraGTx Holdings will offset losses from the drop in MeiraGTx Holdings' long position.| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
| MeiraGTx Holdings vs. Ideaya Biosciences | MeiraGTx Holdings vs. AnaptysBio | MeiraGTx Holdings vs. Keros Therapeutics | MeiraGTx Holdings vs. Uniqure NV |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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