Correlation Between Armata Pharmaceuticals and GRPH Old

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

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

Diversification Opportunities for Armata Pharmaceuticals and GRPH Old

0.0

Correlation Coefficient

Armata Pharmaceuticals  GRPH Old

Pay attention - limited upside

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

Pair Corralation between Armata Pharmaceuticals and GRPH Old

If you would invest (100.00) in GRPH Old on November 29, 2024 and sell it today you would earn a total of  100.00  from holding GRPH Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Armata Pharmaceuticals  vs.  GRPH Old

Armata Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Armata Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Armata Pharmaceuticals is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

GRPH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days GRPH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, GRPH Old is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Armata Pharmaceuticals and GRPH Old

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

The idea behind Armata Pharmaceuticals and GRPH Old 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.