Correlation Between Gelteq Limited and Lantheus Holdings

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

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

Diversification Opportunities for Gelteq Limited and Lantheus Holdings

0.17

Correlation Coefficient

Gelteq Limited  Lantheus Holdings

Average diversification

The 3 months correlation between Gelteq and Lantheus is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gelteq Limited Ordinary and Lantheus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantheus Holdings and Gelteq Limited 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 Gelteq Limited Ordinary are associated (or correlated) with Lantheus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantheus Holdings has no effect on the direction of Gelteq Limited i.e., Gelteq Limited and Lantheus Holdings go up and down completely randomly.

Pair Corralation between Gelteq Limited and Lantheus Holdings

Given the investment horizon of 90 days Gelteq Limited Ordinary is expected to generate 5.34 times more return on investment than Lantheus Holdings. However, Gelteq Limited is 5.34 times more volatile than Lantheus Holdings. It trades about 0.05 of its potential returns per unit of risk. Lantheus Holdings is currently generating about 0.04 per unit of risk. If you would invest  294.00  in Gelteq Limited Ordinary on October 21, 2024 and sell it today you would lose (75.00) from holding Gelteq Limited Ordinary or give up 25.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	11.29%
Values	Daily Returns

Gelteq Limited Ordinary  vs.  Lantheus Holdings

Gelteq Limited Ordinary

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gelteq Limited Ordinary are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent essential indicators, Gelteq Limited unveiled solid returns over the last few months and may actually be approaching a breakup point.

Lantheus Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lantheus Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Gelteq Limited and Lantheus Holdings

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

The idea behind Gelteq Limited Ordinary and Lantheus Holdings 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.