Correlation Between Guardion Health and Sunshine Biopharma

Can any of the company-specific risk be diversified away by investing in both Guardion Health and Sunshine Biopharma 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 Sunshine Biopharma 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 Sunshine Biopharma, you can compare the effects of market volatilities on Guardion Health and Sunshine Biopharma 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 Sunshine Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardion Health and Sunshine Biopharma.

Diversification Opportunities for Guardion Health and Sunshine Biopharma

0.0

Correlation Coefficient

Guardion Health  Sunshine Biopharma

Pay attention - limited upside

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

Pair Corralation between Guardion Health and Sunshine Biopharma

If you would invest (100.00) in Guardion Health Sciences on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Guardion Health Sciences or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Guardion Health Sciences  vs.  Sunshine Biopharma

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.

Sunshine Biopharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sunshine Biopharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Guardion Health and Sunshine Biopharma

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

The idea behind Guardion Health Sciences and Sunshine Biopharma 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.