Correlation Between Guardion Health and Agile Thrpe

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

By analyzing existing cross correlation between Guardion Health Sciences and Agile Thrpe, you can compare the effects of market volatilities on Guardion Health and Agile Thrpe 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 Guardion Health with a short position of Agile Thrpe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardion Health and Agile Thrpe.

Diversification Opportunities for Guardion Health and Agile Thrpe

0.0

Correlation Coefficient

Guardion Health  Agile Thrpe

Pay attention - limited upside

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

Pair Corralation between Guardion Health and Agile Thrpe

If you would invest (100.00) in Agile Thrpe on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Agile Thrpe or generate -100.0% return on investment over 90 days.

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

Guardion Health Sciences  vs.  Agile Thrpe

Guardion Health Sciences

Risk-Adjusted Performance

Very Weak

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

Agile Thrpe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agile Thrpe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Agile Thrpe is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guardion Health and Agile Thrpe

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

The idea behind Guardion Health Sciences and Agile Thrpe 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.