Correlation Between Stemsation International and Global Wholehealth

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

By analyzing existing cross correlation between Stemsation International and Global Wholehealth Partners, you can compare the effects of market volatilities on Stemsation International and Global Wholehealth 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 Stemsation International with a short position of Global Wholehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stemsation International and Global Wholehealth.

Diversification Opportunities for Stemsation International and Global Wholehealth

0.0

Correlation Coefficient

Stemsation International  Global Wholehealth

Pay attention - limited upside

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

Pair Corralation between Stemsation International and Global Wholehealth

If you would invest  2.07  in Stemsation International on December 30, 2024 and sell it today you would lose (1.27) from holding Stemsation International or give up 61.35% of portfolio value over 90 days.

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

Stemsation International  vs.  Global Wholehealth Partners

Stemsation International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stemsation International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Stemsation International displayed solid returns over the last few months and may actually be approaching a breakup point.

Global Wholehealth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Wholehealth Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Global Wholehealth is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Stemsation International and Global Wholehealth

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

The idea behind Stemsation International and Global Wholehealth Partners 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.