Correlation Between StealthGas and Bioharvest Sciences

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

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

Diversification Opportunities for StealthGas and Bioharvest Sciences

0.33

Correlation Coefficient

StealthGas  Bioharvest Sciences

Weak diversification

The 3 months correlation between StealthGas and Bioharvest is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding StealthGas and Bioharvest Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioharvest Sciences and StealthGas 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 StealthGas are associated (or correlated) with Bioharvest Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioharvest Sciences has no effect on the direction of StealthGas i.e., StealthGas and Bioharvest Sciences go up and down completely randomly.

Pair Corralation between StealthGas and Bioharvest Sciences

Given the investment horizon of 90 days StealthGas is expected to under-perform the Bioharvest Sciences. But the stock apears to be less risky and, when comparing its historical volatility, StealthGas is 1.82 times less risky than Bioharvest Sciences. The stock trades about -0.16 of its potential returns per unit of risk. The Bioharvest Sciences is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  554.00  in Bioharvest Sciences on August 10, 2024 and sell it today you would lose (40.00) from holding Bioharvest Sciences or give up 7.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

StealthGas  vs.  Bioharvest Sciences

StealthGas

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in StealthGas are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, StealthGas is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Bioharvest Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bioharvest Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with StealthGas and Bioharvest Sciences

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

The idea behind StealthGas and Bioharvest Sciences 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.