Correlation Between Guardion Health and Aeterna Zentaris
Can any of the company-specific risk be diversified away by investing in both Guardion Health and Aeterna Zentaris 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 Guardion Health and Aeterna Zentaris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardion Health Sciences and Aeterna Zentaris, you can compare the effects of market volatilities on Guardion Health and Aeterna Zentaris 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 Guardion Health with a short position of Aeterna Zentaris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardion Health and Aeterna Zentaris.
Diversification Opportunities for Guardion Health and Aeterna Zentaris
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guardion and Aeterna is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guardion Health Sciences and Aeterna Zentaris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeterna Zentaris and Guardion Health 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 Guardion Health Sciences are associated (or correlated) with Aeterna Zentaris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeterna Zentaris has no effect on the direction of Guardion Health i.e., Guardion Health and Aeterna Zentaris go up and down completely randomly.
Pair Corralation between Guardion Health and Aeterna Zentaris
Given the investment horizon of 90 days Guardion Health Sciences is expected to generate 1.53 times more return on investment than Aeterna Zentaris. However, Guardion Health is 1.53 times more volatile than Aeterna Zentaris. It trades about 0.03 of its potential returns per unit of risk. Aeterna Zentaris is currently generating about -0.03 per unit of risk. If you would invest 278.00 in Guardion Health Sciences on August 26, 2024 and sell it today you would earn a total of 51.00 from holding Guardion Health Sciences or generate 18.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.62% |
| Values | Daily Returns |
Guardion Health Sciences vs. Aeterna Zentaris
Performance |
| Timeline |
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aeterna Zentaris |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guardion Health and Aeterna Zentaris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardion Health and Aeterna Zentaris
The main advantage of trading using opposite Guardion Health and Aeterna Zentaris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardion Health position performs unexpectedly, Aeterna Zentaris 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 Aeterna Zentaris will offset losses from the drop in Aeterna Zentaris' long position.| Guardion Health vs. Biofrontera | Guardion Health vs. Shuttle Pharmaceuticals | Guardion Health vs. Akanda Corp | Guardion Health vs. China Pharma Holdings |
| Aeterna Zentaris vs. Pulmatrix | Aeterna Zentaris vs. Bio Path Holdings | Aeterna Zentaris vs. Moleculin Biotech | Aeterna Zentaris vs. Adial Pharmaceuticals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |