Correlation Between Guardion Health and Eagle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Guardion Health and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals 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 Eagle Pharmaceuticals, you can compare the effects of market volatilities on Guardion Health and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardion Health and Eagle Pharmaceuticals.
Diversification Opportunities for Guardion Health and Eagle Pharmaceuticals
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardion and Eagle is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Guardion Health Sciences and Eagle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pharmaceuticals 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 Eagle Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pharmaceuticals has no effect on the direction of Guardion Health i.e., Guardion Health and Eagle Pharmaceuticals go up and down completely randomly.
Pair Corralation between Guardion Health and Eagle Pharmaceuticals
If you would invest 199.00 in Eagle Pharmaceuticals on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Eagle Pharmaceuticals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardion Health Sciences vs. Eagle Pharmaceuticals
Performance |
| Timeline |
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guardion Health and Eagle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardion Health and Eagle Pharmaceuticals
The main advantage of trading using opposite Guardion Health and Eagle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardion Health position performs unexpectedly, Eagle Pharmaceuticals 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 Eagle Pharmaceuticals will offset losses from the drop in Eagle Pharmaceuticals' long position.| Guardion Health vs. Biofrontera | Guardion Health vs. Shuttle Pharmaceuticals | Guardion Health vs. Akanda Corp | Guardion Health vs. China Pharma Holdings |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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