Correlation Between Sunshine Biopharma and Guardion Health
Can any of the company-specific risk be diversified away by investing in both Sunshine Biopharma and Guardion Health 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 Sunshine Biopharma and Guardion Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunshine Biopharma Warrant and Guardion Health Sciences, you can compare the effects of market volatilities on Sunshine Biopharma and Guardion Health 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 Sunshine Biopharma with a short position of Guardion Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunshine Biopharma and Guardion Health.
Diversification Opportunities for Sunshine Biopharma and Guardion Health
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunshine and Guardion is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sunshine Biopharma Warrant and Guardion Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardion Health Sciences and Sunshine Biopharma 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 Sunshine Biopharma Warrant are associated (or correlated) with Guardion Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardion Health Sciences has no effect on the direction of Sunshine Biopharma i.e., Sunshine Biopharma and Guardion Health go up and down completely randomly.
Pair Corralation between Sunshine Biopharma and Guardion Health
Assuming the 90 days horizon Sunshine Biopharma Warrant is expected to generate 10.66 times more return on investment than Guardion Health. However, Sunshine Biopharma is 10.66 times more volatile than Guardion Health Sciences. It trades about 0.11 of its potential returns per unit of risk. Guardion Health Sciences is currently generating about 0.05 per unit of risk. If you would invest 8.00 in Sunshine Biopharma Warrant on August 28, 2024 and sell it today you would earn a total of 14.00 from holding Sunshine Biopharma Warrant or generate 175.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.74% |
| Values | Daily Returns |
Sunshine Biopharma Warrant vs. Guardion Health Sciences
Performance |
| Timeline |
| Sunshine Biopharma |
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Sunshine Biopharma and Guardion Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunshine Biopharma and Guardion Health
The main advantage of trading using opposite Sunshine Biopharma and Guardion Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunshine Biopharma position performs unexpectedly, Guardion Health 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 Guardion Health will offset losses from the drop in Guardion Health's long position.| Sunshine Biopharma vs. Sunshine Biopharma | Sunshine Biopharma vs. Thayer Ventures Acquisition | Sunshine Biopharma vs. Biofrontera Warrants | Sunshine Biopharma vs. Neurosense Therapeutics |
| Guardion Health vs. Biofrontera | Guardion Health vs. Shuttle Pharmaceuticals | Guardion Health vs. Akanda Corp | Guardion Health vs. China Pharma 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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