Correlation Between Grace Therapeutics, and Oragenics

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

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

Diversification Opportunities for Grace Therapeutics, and Oragenics

-0.68

Correlation Coefficient

Grace Therapeutics,  Oragenics

Excellent diversification

The 3 months correlation between Grace and Oragenics is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Grace Therapeutics, and Oragenics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oragenics and Grace Therapeutics, 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 Grace Therapeutics, are associated (or correlated) with Oragenics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oragenics has no effect on the direction of Grace Therapeutics, i.e., Grace Therapeutics, and Oragenics go up and down completely randomly.

Pair Corralation between Grace Therapeutics, and Oragenics

Given the investment horizon of 90 days Grace Therapeutics, is expected to generate 0.29 times more return on investment than Oragenics. However, Grace Therapeutics, is 3.5 times less risky than Oragenics. It trades about 0.01 of its potential returns per unit of risk. Oragenics is currently generating about -0.12 per unit of risk. If you would invest  302.00  in Grace Therapeutics, on May 7, 2025 and sell it today you would lose (2.00) from holding Grace Therapeutics, or give up 0.66% of portfolio value over 90 days.

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

Grace Therapeutics,  vs.  Oragenics

Grace Therapeutics,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Grace Therapeutics, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Grace Therapeutics, is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Oragenics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oragenics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Grace Therapeutics, and Oragenics

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

The idea behind Grace Therapeutics, and Oragenics 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.