Correlation Between Gogoro Equity and TC BioPharm

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

By analyzing existing cross correlation between Gogoro Equity Warrant and TC BioPharm Holdings, you can compare the effects of market volatilities on Gogoro Equity and TC BioPharm 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 Gogoro Equity with a short position of TC BioPharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gogoro Equity and TC BioPharm.

Diversification Opportunities for Gogoro Equity and TC BioPharm

-0.34

Correlation Coefficient

Gogoro Equity  TC BioPharm

Very good diversification

The 3 months correlation between Gogoro and TCBP is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gogoro Equity Warrant and TC BioPharm Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC BioPharm Holdings and Gogoro Equity 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 Gogoro Equity Warrant are associated (or correlated) with TC BioPharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC BioPharm Holdings has no effect on the direction of Gogoro Equity i.e., Gogoro Equity and TC BioPharm go up and down completely randomly.

Pair Corralation between Gogoro Equity and TC BioPharm

Assuming the 90 days horizon Gogoro Equity Warrant is expected to generate 1.67 times more return on investment than TC BioPharm. However, Gogoro Equity is 1.67 times more volatile than TC BioPharm Holdings. It trades about 0.12 of its potential returns per unit of risk. TC BioPharm Holdings is currently generating about -0.32 per unit of risk. If you would invest  1.97  in Gogoro Equity Warrant on December 28, 2024 and sell it today you would earn a total of  0.59  from holding Gogoro Equity Warrant or generate 29.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.49%
Values	Daily Returns

Gogoro Equity Warrant  vs.  TC BioPharm Holdings

Gogoro Equity Warrant

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gogoro Equity Warrant are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Gogoro Equity showed solid returns over the last few months and may actually be approaching a breakup point.

TC BioPharm Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days TC BioPharm Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Gogoro Equity and TC BioPharm

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

The idea behind Gogoro Equity Warrant and TC BioPharm 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.