Correlation Between Bliss GVS and Helios Technologies

Can any of the company-specific risk be diversified away by investing in both Bliss GVS and Helios Technologies 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 Helios Technologies 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 Helios Technologies, you can compare the effects of market volatilities on Bliss GVS and Helios Technologies 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 Helios Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bliss GVS and Helios Technologies.

Diversification Opportunities for Bliss GVS and Helios Technologies

0.0

Correlation Coefficient

Bliss GVS  Helios Technologies

Pay attention - limited upside

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

Pair Corralation between Bliss GVS and Helios Technologies

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.  Helios Technologies

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.

Helios Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Helios Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Helios Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bliss GVS and Helios Technologies

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

The idea behind Bliss GVS Pharma and Helios Technologies 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.