Correlation Between PEPTONIC MEDICAL and GPT

Can any of the company-specific risk be diversified away by investing in both PEPTONIC MEDICAL and GPT 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 PEPTONIC MEDICAL and GPT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PEPTONIC MEDICAL and GPT Group, you can compare the effects of market volatilities on PEPTONIC MEDICAL and GPT 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 PEPTONIC MEDICAL with a short position of GPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPTONIC MEDICAL and GPT.

Diversification Opportunities for PEPTONIC MEDICAL and GPT

0.0

Correlation Coefficient

PEPTONIC MEDICAL  GPT

Pay attention - limited upside

The 3 months correlation between PEPTONIC and GPT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PEPTONIC MEDICAL and GPT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT Group and PEPTONIC MEDICAL 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 PEPTONIC MEDICAL are associated (or correlated) with GPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPT Group has no effect on the direction of PEPTONIC MEDICAL i.e., PEPTONIC MEDICAL and GPT go up and down completely randomly.

Pair Corralation between PEPTONIC MEDICAL and GPT

If you would invest  254.00  in GPT Group on December 21, 2024 and sell it today you would earn a total of  8.00  from holding GPT Group or generate 3.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PEPTONIC MEDICAL  vs.  GPT Group

PEPTONIC MEDICAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days PEPTONIC MEDICAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PEPTONIC MEDICAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

GPT Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GPT Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GPT may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with PEPTONIC MEDICAL and GPT

The main advantage of trading using opposite PEPTONIC MEDICAL and GPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPTONIC MEDICAL position performs unexpectedly, GPT 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 GPT will offset losses from the drop in GPT's long position.

The idea behind PEPTONIC MEDICAL and GPT Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.