Correlation Between BriaCell Therapeutics and G Medical

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

By analyzing existing cross correlation between BriaCell Therapeutics Corp and G Medical Innovations, you can compare the effects of market volatilities on BriaCell Therapeutics and G Medical 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 BriaCell Therapeutics with a short position of G Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BriaCell Therapeutics and G Medical.

Diversification Opportunities for BriaCell Therapeutics and G Medical

-0.02

Correlation Coefficient

BriaCell Therapeutics  G Medical

Good diversification

The 3 months correlation between BriaCell and GMVDW is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding BriaCell Therapeutics Corp and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations and BriaCell Therapeutics 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 BriaCell Therapeutics Corp are associated (or correlated) with G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of BriaCell Therapeutics i.e., BriaCell Therapeutics and G Medical go up and down completely randomly.

Pair Corralation between BriaCell Therapeutics and G Medical

Assuming the 90 days horizon BriaCell Therapeutics Corp is expected to under-perform the G Medical. But the stock apears to be less risky and, when comparing its historical volatility, BriaCell Therapeutics Corp is 2.34 times less risky than G Medical. The stock trades about -0.01 of its potential returns per unit of risk. The G Medical Innovations is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  162.00  in G Medical Innovations on October 3, 2024 and sell it today you would earn a total of  239.00  from holding G Medical Innovations or generate 147.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	6.67%
Values	Daily Returns

BriaCell Therapeutics Corp  vs.  G Medical Innovations

BriaCell Therapeutics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BriaCell Therapeutics Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BriaCell Therapeutics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

G Medical Innovations

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G Medical Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, G Medical is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with BriaCell Therapeutics and G Medical

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

The idea behind BriaCell Therapeutics Corp and G Medical Innovations 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.