Correlation Between Guardant Health and Cryoport

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

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

Diversification Opportunities for Guardant Health and Cryoport

0.13

Correlation Coefficient

Guardant Health  Cryoport

Average diversification

The 3 months correlation between Guardant and Cryoport is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guardant Health and Cryoport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cryoport and Guardant Health 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 Guardant Health are associated (or correlated) with Cryoport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cryoport has no effect on the direction of Guardant Health i.e., Guardant Health and Cryoport go up and down completely randomly.

Pair Corralation between Guardant Health and Cryoport

Allowing for the 90-day total investment horizon Guardant Health is expected to generate 1.99 times less return on investment than Cryoport. But when comparing it to its historical volatility, Guardant Health is 1.32 times less risky than Cryoport. It trades about 0.04 of its potential returns per unit of risk. Cryoport is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  639.00  in Cryoport on September 27, 2024 and sell it today you would earn a total of  169.00  from holding Cryoport or generate 26.45% return on investment over 90 days.

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

Guardant Health  vs.  Cryoport

Guardant Health

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guardant Health are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical indicators, Guardant Health demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Cryoport

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cryoport are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Cryoport may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Guardant Health and Cryoport

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

The idea behind Guardant Health and Cryoport 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..