Correlation Between BioLight Life and GP Global

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

By analyzing existing cross correlation between BioLight Life Sciences and GP Global Power, you can compare the effects of market volatilities on BioLight Life and GP Global 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 BioLight Life with a short position of GP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLight Life and GP Global.

Diversification Opportunities for BioLight Life and GP Global

0.0

Correlation Coefficient

BioLight Life  GP Global

Pay attention - limited upside

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

Pair Corralation between BioLight Life and GP Global

If you would invest  43,500  in BioLight Life Sciences on September 27, 2024 and sell it today you would earn a total of  6,400  from holding BioLight Life Sciences or generate 14.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.83%
Values	Daily Returns

BioLight Life Sciences  vs.  GP Global Power

BioLight Life Sciences

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BioLight Life Sciences are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BioLight Life sustained solid returns over the last few months and may actually be approaching a breakup point.

GP Global Power

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GP Global Power has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GP Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BioLight Life and GP Global

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

The idea behind BioLight Life Sciences and GP Global Power 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..