Correlation Between GCL Poly and MabCure

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

By analyzing existing cross correlation between GCL Poly Energy Holdings and MabCure, you can compare the effects of market volatilities on GCL Poly and MabCure 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 GCL Poly with a short position of MabCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCL Poly and MabCure.

Diversification Opportunities for GCL Poly and MabCure

0.0

Correlation Coefficient

GCL Poly  MabCure

Pay attention - limited upside

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

Pair Corralation between GCL Poly and MabCure

If you would invest  0.01  in MabCure on October 27, 2024 and sell it today you would earn a total of  0.00  from holding MabCure or generate 0.0% return on investment over 90 days.

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

GCL Poly Energy Holdings  vs.  MabCure

GCL Poly Energy

Risk-Adjusted Performance

0 of 100

Very Weak

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

MabCure

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with GCL Poly and MabCure

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

The idea behind GCL Poly Energy Holdings and MabCure 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 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.