Correlation Between Bliss GVS and Continental Gold

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

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

Diversification Opportunities for Bliss GVS and Continental Gold

0.0

Correlation Coefficient

Bliss GVS  Continental Gold

Pay attention - limited upside

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

Pair Corralation between Bliss GVS and Continental Gold

If you would invest  11,960  in Bliss GVS Pharma on February 5, 2024 and sell it today you would lose (55.00) from holding Bliss GVS Pharma or give up 0.46% of portfolio value over 90 days.

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

Bliss GVS Pharma  vs.  Continental Gold

Bliss GVS Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

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

Continental Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Continental Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Continental Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bliss GVS and Continental Gold

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

The idea behind Bliss GVS Pharma and Continental Gold 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 Stocks Directory module to find actively traded stocks across global markets.