Correlation Between Guided Therapeutics and Glaukos Corp
Can any of the company-specific risk be diversified away by investing in both Guided Therapeutics and Glaukos Corp 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 Guided Therapeutics and Glaukos Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guided Therapeutics and Glaukos Corp, you can compare the effects of market volatilities on Guided Therapeutics and Glaukos Corp 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 Guided Therapeutics with a short position of Glaukos Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guided Therapeutics and Glaukos Corp.
Diversification Opportunities for Guided Therapeutics and Glaukos Corp
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guided and Glaukos is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guided Therapeutics and Glaukos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaukos Corp and Guided Therapeutics 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 Guided Therapeutics are associated (or correlated) with Glaukos Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaukos Corp has no effect on the direction of Guided Therapeutics i.e., Guided Therapeutics and Glaukos Corp go up and down completely randomly.
Pair Corralation between Guided Therapeutics and Glaukos Corp
Given the investment horizon of 90 days Guided Therapeutics is expected to under-perform the Glaukos Corp. In addition to that, Guided Therapeutics is 4.3 times more volatile than Glaukos Corp. It trades about -0.02 of its total potential returns per unit of risk. Glaukos Corp is currently generating about 0.11 per unit of volatility. If you would invest 13,138 in Glaukos Corp on September 4, 2024 and sell it today you would earn a total of 770.00 from holding Glaukos Corp or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guided Therapeutics vs. Glaukos Corp
Performance |
| Timeline |
| Guided Therapeutics |
| Glaukos Corp |
Guided Therapeutics and Glaukos Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guided Therapeutics and Glaukos Corp
The main advantage of trading using opposite Guided Therapeutics and Glaukos Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guided Therapeutics position performs unexpectedly, Glaukos Corp 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 Glaukos Corp will offset losses from the drop in Glaukos Corp's long position.| Guided Therapeutics vs. Nephros | Guided Therapeutics vs. Intelgenx Technologs | Guided Therapeutics vs. SANUWAVE Health | Guided Therapeutics vs. Spectrascience New |
| Glaukos Corp vs. Orthopediatrics Corp | Glaukos Corp vs. CONMED | Glaukos Corp vs. LivaNova PLC | Glaukos Corp vs. Paragon 28 |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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