Correlation Between Reliq Health and Goldbank Mining

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

By analyzing existing cross correlation between Reliq Health Technologies and Goldbank Mining Corp, you can compare the effects of market volatilities on Reliq Health and Goldbank Mining 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 Reliq Health with a short position of Goldbank Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reliq Health and Goldbank Mining.

Diversification Opportunities for Reliq Health and Goldbank Mining

0.0

Correlation Coefficient

Reliq Health  Goldbank Mining

Pay attention - limited upside

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

Pair Corralation between Reliq Health and Goldbank Mining

Assuming the 90 days horizon Reliq Health Technologies is expected to under-perform the Goldbank Mining. But the stock apears to be less risky and, when comparing its historical volatility, Reliq Health Technologies is 3.22 times less risky than Goldbank Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Goldbank Mining Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  7.00  in Goldbank Mining Corp on September 26, 2024 and sell it today you would earn a total of  11.00  from holding Goldbank Mining Corp or generate 157.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Reliq Health Technologies  vs.  Goldbank Mining Corp

Reliq Health Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Reliq Health Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Reliq Health is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Goldbank Mining Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goldbank Mining Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Goldbank Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Reliq Health and Goldbank Mining

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

The idea behind Reliq Health Technologies and Goldbank Mining Corp 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.