Correlation Between Gardiner Healthcare and Globalink Investment

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

By analyzing existing cross correlation between Gardiner Healthcare Acquisitions and Globalink Investment Warrants, you can compare the effects of market volatilities on Gardiner Healthcare and Globalink Investment 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 Gardiner Healthcare with a short position of Globalink Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gardiner Healthcare and Globalink Investment.

Diversification Opportunities for Gardiner Healthcare and Globalink Investment

0.15

Correlation Coefficient

Gardiner Healthcare  Globalink Investment

Average diversification

The 3 months correlation between Gardiner and Globalink is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gardiner Healthcare Acquisitio and Globalink Investment Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalink Investment and Gardiner Healthcare 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 Gardiner Healthcare Acquisitions are associated (or correlated) with Globalink Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalink Investment has no effect on the direction of Gardiner Healthcare i.e., Gardiner Healthcare and Globalink Investment go up and down completely randomly.

Pair Corralation between Gardiner Healthcare and Globalink Investment

If you would invest  2.66  in Globalink Investment Warrants on October 26, 2024 and sell it today you would lose (2.33) from holding Globalink Investment Warrants or give up 87.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	8.33%
Values	Daily Returns

Gardiner Healthcare Acquisitio  vs.  Globalink Investment Warrants

Gardiner Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

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

Globalink Investment

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Globalink Investment Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal forward indicators, Globalink Investment showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gardiner Healthcare and Globalink Investment

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

The idea behind Gardiner Healthcare Acquisitions and Globalink Investment Warrants 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.