Correlation Between Guided Therapeutics and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Guided Therapeutics and Saker Aviation 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 Saker Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guided Therapeutics and Saker Aviation Services, you can compare the effects of market volatilities on Guided Therapeutics and Saker Aviation 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 Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guided Therapeutics and Saker Aviation.
Diversification Opportunities for Guided Therapeutics and Saker Aviation
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guided and Saker is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guided Therapeutics and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services 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 Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Guided Therapeutics i.e., Guided Therapeutics and Saker Aviation go up and down completely randomly.
Pair Corralation between Guided Therapeutics and Saker Aviation
Given the investment horizon of 90 days Guided Therapeutics is expected to under-perform the Saker Aviation. In addition to that, Guided Therapeutics is 2.62 times more volatile than Saker Aviation Services. It trades about -0.12 of its total potential returns per unit of risk. Saker Aviation Services is currently generating about 0.19 per unit of volatility. If you would invest 725.00 in Saker Aviation Services on November 28, 2024 and sell it today you would earn a total of 60.00 from holding Saker Aviation Services or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guided Therapeutics vs. Saker Aviation Services
Performance |
| Timeline |
| Guided Therapeutics |
| Saker Aviation Services |
Guided Therapeutics and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guided Therapeutics and Saker Aviation
The main advantage of trading using opposite Guided Therapeutics and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guided Therapeutics position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Guided Therapeutics vs. Modular Medical | Guided Therapeutics vs. Neuropace | Guided Therapeutics vs. Nexalin Technology | Guided Therapeutics vs. STRATA Skin Sciences |
| Saker Aviation vs. Passur Aerospace | Saker Aviation vs. Table Trac | Saker Aviation vs. Optex Systems Holdings, |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |