Correlation Between NewGenIvf Group and Guardian Pharmacy

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

By analyzing existing cross correlation between NewGenIvf Group Limited and Guardian Pharmacy Services,, you can compare the effects of market volatilities on NewGenIvf Group and Guardian Pharmacy 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 NewGenIvf Group with a short position of Guardian Pharmacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewGenIvf Group and Guardian Pharmacy.

Diversification Opportunities for NewGenIvf Group and Guardian Pharmacy

0.26

Correlation Coefficient

NewGenIvf Group  Guardian Pharmacy

Modest diversification

The 3 months correlation between NewGenIvf and Guardian is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding NewGenIvf Group Limited and Guardian Pharmacy Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Pharmacy and NewGenIvf Group 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 NewGenIvf Group Limited are associated (or correlated) with Guardian Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Pharmacy has no effect on the direction of NewGenIvf Group i.e., NewGenIvf Group and Guardian Pharmacy go up and down completely randomly.

Pair Corralation between NewGenIvf Group and Guardian Pharmacy

Given the investment horizon of 90 days NewGenIvf Group Limited is expected to under-perform the Guardian Pharmacy. In addition to that, NewGenIvf Group is 3.91 times more volatile than Guardian Pharmacy Services,. It trades about -0.22 of its total potential returns per unit of risk. Guardian Pharmacy Services, is currently generating about 0.01 per unit of volatility. If you would invest  2,028  in Guardian Pharmacy Services, on December 30, 2024 and sell it today you would lose (13.00) from holding Guardian Pharmacy Services, or give up 0.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

NewGenIvf Group Limited  vs.  Guardian Pharmacy Services,

NewGenIvf Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days NewGenIvf Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Guardian Pharmacy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guardian Pharmacy Services, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Guardian Pharmacy is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with NewGenIvf Group and Guardian Pharmacy

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

The idea behind NewGenIvf Group Limited and Guardian Pharmacy Services, 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.