Correlation Between Pharmather Holdings and Grey Cloak

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

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

Diversification Opportunities for Pharmather Holdings and Grey Cloak

-0.45

Correlation Coefficient

Pharmather Holdings  Grey Cloak

Very good diversification

The 3 months correlation between Pharmather and Grey is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pharmather Holdings and Grey Cloak Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grey Cloak Tech and Pharmather Holdings 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 Pharmather Holdings are associated (or correlated) with Grey Cloak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grey Cloak Tech has no effect on the direction of Pharmather Holdings i.e., Pharmather Holdings and Grey Cloak go up and down completely randomly.

Pair Corralation between Pharmather Holdings and Grey Cloak

Assuming the 90 days horizon Pharmather Holdings is expected to generate 0.75 times more return on investment than Grey Cloak. However, Pharmather Holdings is 1.33 times less risky than Grey Cloak. It trades about 0.23 of its potential returns per unit of risk. Grey Cloak Tech is currently generating about -0.02 per unit of risk. If you would invest  16.00  in Pharmather Holdings on May 5, 2025 and sell it today you would earn a total of  23.00  from holding Pharmather Holdings or generate 143.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Pharmather Holdings  vs.  Grey Cloak Tech

Pharmather Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pharmather Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Pharmather Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Grey Cloak Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grey Cloak Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Pharmather Holdings and Grey Cloak

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

The idea behind Pharmather Holdings and Grey Cloak Tech 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.