Correlation Between Guardion Health and Histogen

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

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

Diversification Opportunities for Guardion Health and Histogen

-0.31

Correlation Coefficient

Guardion Health  Histogen

Very good diversification

The 3 months correlation between Guardion and Histogen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guardion Health Sciences and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Guardion 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 Guardion Health Sciences are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Guardion Health i.e., Guardion Health and Histogen go up and down completely randomly.

Pair Corralation between Guardion Health and Histogen

Given the investment horizon of 90 days Guardion Health Sciences is expected to generate 0.02 times more return on investment than Histogen. However, Guardion Health Sciences is 43.06 times less risky than Histogen. It trades about 0.32 of its potential returns per unit of risk. Histogen is currently generating about -0.08 per unit of risk. If you would invest  326.00  in Guardion Health Sciences on October 10, 2024 and sell it today you would earn a total of  3.00  from holding Guardion Health Sciences or generate 0.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	14.81%
Values	Daily Returns

Guardion Health Sciences  vs.  Histogen

Guardion Health Sciences

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Guardion Health Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly inconsistent basic indicators, Guardion Health may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Histogen

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Guardion Health and Histogen

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

The idea behind Guardion Health Sciences and Histogen 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.