Correlation Between GILEAD and Dana
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By analyzing existing cross correlation between GILEAD SCIENCES INC and Dana Inc, you can compare the effects of market volatilities on GILEAD and Dana 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 GILEAD with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of GILEAD and Dana.
Diversification Opportunities for GILEAD and Dana
Very weak diversification
The 3 months correlation between GILEAD and Dana is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GILEAD SCIENCES INC and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and GILEAD 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 GILEAD SCIENCES INC are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of GILEAD i.e., GILEAD and Dana go up and down completely randomly.
Pair Corralation between GILEAD and Dana
Assuming the 90 days trading horizon GILEAD SCIENCES INC is expected to generate 0.11 times more return on investment than Dana. However, GILEAD SCIENCES INC is 8.75 times less risky than Dana. It trades about 0.04 of its potential returns per unit of risk. Dana Inc is currently generating about -0.06 per unit of risk. If you would invest 8,250 in GILEAD SCIENCES INC on September 3, 2024 and sell it today you would earn a total of 158.00 from holding GILEAD SCIENCES INC or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
GILEAD SCIENCES INC vs. Dana Inc
Performance |
| Timeline |
| GILEAD SCIENCES INC |
| Dana Inc |
GILEAD and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GILEAD and Dana
The main advantage of trading using opposite GILEAD and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GILEAD position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| GILEAD vs. Dana Inc | GILEAD vs. National CineMedia | GILEAD vs. Marine Products | GILEAD vs. Sphere Entertainment Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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