Correlation Between Guardion Health and China Pharma
Can any of the company-specific risk be diversified away by investing in both Guardion Health and China Pharma 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 China Pharma 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 China Pharma Holdings, you can compare the effects of market volatilities on Guardion Health and China Pharma 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 China Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardion Health and China Pharma.
Diversification Opportunities for Guardion Health and China Pharma
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guardion and China is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guardion Health Sciences and China Pharma Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Pharma Holdings 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 China Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Pharma Holdings has no effect on the direction of Guardion Health i.e., Guardion Health and China Pharma go up and down completely randomly.
Pair Corralation between Guardion Health and China Pharma
If you would invest 329.00 in Guardion Health Sciences on October 25, 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 Against |
| Strength | Very Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
Guardion Health Sciences vs. China Pharma Holdings
Performance |
| Timeline |
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Pharma Holdings |
Guardion Health and China Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardion Health and China Pharma
The main advantage of trading using opposite Guardion Health and China Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardion Health position performs unexpectedly, China Pharma 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 China Pharma will offset losses from the drop in China Pharma's long position.| Guardion Health vs. Biofrontera | Guardion Health vs. Shuttle Pharmaceuticals | Guardion Health vs. Akanda Corp | Guardion Health vs. China Pharma Holdings |
| China Pharma vs. Universe Pharmaceuticals | China Pharma vs. Sonoma Pharmaceuticals | China Pharma vs. Akanda Corp | China Pharma vs. Halo Collective |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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