Correlation Between China SXT and Gelteq Limited
Can any of the company-specific risk be diversified away by investing in both China SXT and Gelteq Limited 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 China SXT and Gelteq Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China SXT Pharmaceuticals and Gelteq Limited Ordinary, you can compare the effects of market volatilities on China SXT and Gelteq Limited 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 China SXT with a short position of Gelteq Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of China SXT and Gelteq Limited.
Diversification Opportunities for China SXT and Gelteq Limited
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Gelteq is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding China SXT Pharmaceuticals and Gelteq Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelteq Limited Ordinary and China SXT 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 China SXT Pharmaceuticals are associated (or correlated) with Gelteq Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelteq Limited Ordinary has no effect on the direction of China SXT i.e., China SXT and Gelteq Limited go up and down completely randomly.
Pair Corralation between China SXT and Gelteq Limited
Given the investment horizon of 90 days China SXT Pharmaceuticals is expected to generate 0.65 times more return on investment than Gelteq Limited. However, China SXT Pharmaceuticals is 1.53 times less risky than Gelteq Limited. It trades about -0.11 of its potential returns per unit of risk. Gelteq Limited Ordinary is currently generating about -0.34 per unit of risk. If you would invest 106.00 in China SXT Pharmaceuticals on August 24, 2024 and sell it today you would lose (67.00) from holding China SXT Pharmaceuticals or give up 63.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 14.4% |
| Values | Daily Returns |
China SXT Pharmaceuticals vs. Gelteq Limited Ordinary
Performance |
| Timeline |
| China SXT Pharmaceuticals |
| Gelteq Limited Ordinary |
China SXT and Gelteq Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China SXT and Gelteq Limited
The main advantage of trading using opposite China SXT and Gelteq Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China SXT position performs unexpectedly, Gelteq Limited 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 Gelteq Limited will offset losses from the drop in Gelteq Limited's long position.| China SXT vs. Akanda Corp | China SXT vs. Petros Pharmaceuticals | China SXT vs. GelStat Corp | China SXT vs. Shuttle Pharmaceuticals |
| Gelteq Limited vs. cbdMD Inc | Gelteq Limited vs. OrganiGram Holdings | Gelteq Limited vs. Takeda Pharmaceutical Co | Gelteq Limited vs. Universe Pharmaceuticals |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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