Correlation Between Ggtoor and Amarantus Bioscience

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

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

Diversification Opportunities for Ggtoor and Amarantus Bioscience

-0.16

Correlation Coefficient

Ggtoor  Amarantus Bioscience

Good diversification

The 3 months correlation between Ggtoor and Amarantus is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ggtoor Inc and Amarantus Bioscience Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarantus Bioscience and Ggtoor 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 Ggtoor Inc are associated (or correlated) with Amarantus Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarantus Bioscience has no effect on the direction of Ggtoor i.e., Ggtoor and Amarantus Bioscience go up and down completely randomly.

Pair Corralation between Ggtoor and Amarantus Bioscience

Given the investment horizon of 90 days Ggtoor is expected to generate 1.27 times less return on investment than Amarantus Bioscience. But when comparing it to its historical volatility, Ggtoor Inc is 1.03 times less risky than Amarantus Bioscience. It trades about 0.1 of its potential returns per unit of risk. Amarantus Bioscience Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Amarantus Bioscience Holdings on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Amarantus Bioscience Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.22%
Values	Daily Returns

Ggtoor Inc  vs.  Amarantus Bioscience Holdings

Ggtoor Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ggtoor Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Ggtoor reported solid returns over the last few months and may actually be approaching a breakup point.

Amarantus Bioscience

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amarantus Bioscience Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, Amarantus Bioscience unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ggtoor and Amarantus Bioscience

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

The idea behind Ggtoor Inc and Amarantus Bioscience 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.