Correlation Between Saker Aviation and Guided Therapeutics
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Guided Therapeutics 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 Saker Aviation and Guided Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saker Aviation Services and Guided Therapeutics, you can compare the effects of market volatilities on Saker Aviation and Guided Therapeutics 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 Saker Aviation with a short position of Guided Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Guided Therapeutics.
Diversification Opportunities for Saker Aviation and Guided Therapeutics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saker and Guided is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Guided Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guided Therapeutics and Saker Aviation 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 Saker Aviation Services are associated (or correlated) with Guided Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guided Therapeutics has no effect on the direction of Saker Aviation i.e., Saker Aviation and Guided Therapeutics go up and down completely randomly.
Pair Corralation between Saker Aviation and Guided Therapeutics
Given the investment horizon of 90 days Saker Aviation Services is expected to under-perform the Guided Therapeutics. But the otc stock apears to be less risky and, when comparing its historical volatility, Saker Aviation Services is 1.65 times less risky than Guided Therapeutics. The otc stock trades about -0.11 of its potential returns per unit of risk. The Guided Therapeutics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Guided Therapeutics on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Guided Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saker Aviation Services vs. Guided Therapeutics
Performance |
| Timeline |
| Saker Aviation Services |
| Guided Therapeutics |
Saker Aviation and Guided Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Guided Therapeutics
The main advantage of trading using opposite Saker Aviation and Guided Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Guided Therapeutics 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 Guided Therapeutics will offset losses from the drop in Guided Therapeutics' long position.| Saker Aviation vs. Deere Company | Saker Aviation vs. Columbus McKinnon | Saker Aviation vs. Hyster Yale Materials Handling | Saker Aviation vs. Manitowoc |
| Guided Therapeutics vs. Nephros | Guided Therapeutics vs. Intelgenx Technologs | Guided Therapeutics vs. SANUWAVE Health | Guided Therapeutics vs. Spectrascience New |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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