Correlation Between Arrayit and Guardant Health

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

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

Diversification Opportunities for Arrayit and Guardant Health

0.0

Correlation Coefficient

Arrayit  Guardant Health

Pay attention - limited upside

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

Pair Corralation between Arrayit and Guardant Health

If you would invest  2,135  in Guardant Health on October 5, 2024 and sell it today you would earn a total of  920.00  from holding Guardant Health or generate 43.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Arrayit  vs.  Guardant Health

Arrayit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Arrayit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Arrayit is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Guardant Health

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guardant Health are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Guardant Health demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Arrayit and Guardant Health

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

The idea behind Arrayit and Guardant Health 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.