Correlation Between Stakeholder Gold and NeuPath Health

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

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

Diversification Opportunities for Stakeholder Gold and NeuPath Health

-0.18

Correlation Coefficient

Stakeholder Gold  NeuPath Health

Good diversification

The 3 months correlation between Stakeholder and NeuPath is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Stakeholder Gold Corp and NeuPath Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeuPath Health and Stakeholder Gold 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 Stakeholder Gold Corp are associated (or correlated) with NeuPath Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeuPath Health has no effect on the direction of Stakeholder Gold i.e., Stakeholder Gold and NeuPath Health go up and down completely randomly.

Pair Corralation between Stakeholder Gold and NeuPath Health

Assuming the 90 days horizon Stakeholder Gold is expected to generate 1.67 times less return on investment than NeuPath Health. In addition to that, Stakeholder Gold is 1.32 times more volatile than NeuPath Health. It trades about 0.03 of its total potential returns per unit of risk. NeuPath Health is currently generating about 0.07 per unit of volatility. If you would invest  17.00  in NeuPath Health on September 28, 2024 and sell it today you would earn a total of  2.00  from holding NeuPath Health or generate 11.76% return on investment over 90 days.

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

Stakeholder Gold Corp  vs.  NeuPath Health

Stakeholder Gold Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stakeholder Gold Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Stakeholder Gold may actually be approaching a critical reversion point that can send shares even higher in January 2025.

NeuPath Health

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NeuPath Health are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, NeuPath Health showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stakeholder Gold and NeuPath Health

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

The idea behind Stakeholder Gold Corp and NeuPath Health 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.