Correlation Between Garda Diversified and Actinogen Medical

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

By analyzing existing cross correlation between Garda Diversified Ppty and Actinogen Medical, you can compare the effects of market volatilities on Garda Diversified and Actinogen 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 Garda Diversified with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garda Diversified and Actinogen Medical.

Diversification Opportunities for Garda Diversified and Actinogen Medical

0.12

Correlation Coefficient

Garda Diversified  Actinogen Medical

Average diversification

The 3 months correlation between Garda and Actinogen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Garda Diversified Ppty and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and Garda Diversified 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 Garda Diversified Ppty are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Garda Diversified i.e., Garda Diversified and Actinogen Medical go up and down completely randomly.

Pair Corralation between Garda Diversified and Actinogen Medical

Assuming the 90 days trading horizon Garda Diversified is expected to generate 48.15 times less return on investment than Actinogen Medical. But when comparing it to its historical volatility, Garda Diversified Ppty is 7.55 times less risky than Actinogen Medical. It trades about 0.01 of its potential returns per unit of risk. Actinogen Medical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2.10  in Actinogen Medical on October 7, 2024 and sell it today you would earn a total of  0.60  from holding Actinogen Medical or generate 28.57% return on investment over 90 days.

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

Garda Diversified Ppty  vs.  Actinogen Medical

Garda Diversified Ppty

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Garda Diversified Ppty are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Garda Diversified is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Actinogen Medical

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Actinogen Medical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Actinogen Medical may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Garda Diversified and Actinogen Medical

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

The idea behind Garda Diversified Ppty and Actinogen Medical 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.