Correlation Between US Global and Advanced Proteome
Can any of the company-specific risk be diversified away by investing in both US Global and Advanced Proteome 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 US Global and Advanced Proteome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Advanced Proteome Therapeutics, you can compare the effects of market volatilities on US Global and Advanced Proteome 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 US Global with a short position of Advanced Proteome. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Advanced Proteome.
Diversification Opportunities for US Global and Advanced Proteome
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GROW and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Advanced Proteome Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Proteome and US Global 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 US Global Investors are associated (or correlated) with Advanced Proteome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Proteome has no effect on the direction of US Global i.e., US Global and Advanced Proteome go up and down completely randomly.
Pair Corralation between US Global and Advanced Proteome
Given the investment horizon of 90 days US Global Investors is expected to generate 0.29 times more return on investment than Advanced Proteome. However, US Global Investors is 3.41 times less risky than Advanced Proteome. It trades about 0.0 of its potential returns per unit of risk. Advanced Proteome Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 250.00 in US Global Investors on September 12, 2024 and sell it today you would lose (8.00) from holding US Global Investors or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Advanced Proteome Therapeutics
Performance |
| Timeline |
| US Global Investors |
| Advanced Proteome |
US Global and Advanced Proteome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Advanced Proteome
The main advantage of trading using opposite US Global and Advanced Proteome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Advanced Proteome 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 Advanced Proteome will offset losses from the drop in Advanced Proteome's long position.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| Advanced Proteome vs. Where Food Comes | Advanced Proteome vs. Kaltura | Advanced Proteome vs. Uber Technologies | Advanced Proteome vs. BioNTech SE |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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