Correlation Between Guardian Pharmacy and Assure Holdings

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

By analyzing existing cross correlation between Guardian Pharmacy Services, and Assure Holdings Corp, you can compare the effects of market volatilities on Guardian Pharmacy and Assure Holdings 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 Guardian Pharmacy with a short position of Assure Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Pharmacy and Assure Holdings.

Diversification Opportunities for Guardian Pharmacy and Assure Holdings

-0.57

Correlation Coefficient

Guardian Pharmacy  Assure Holdings

Excellent diversification

The 3 months correlation between Guardian and Assure is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Pharmacy Services, and Assure Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assure Holdings Corp and Guardian Pharmacy 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 Guardian Pharmacy Services, are associated (or correlated) with Assure Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assure Holdings Corp has no effect on the direction of Guardian Pharmacy i.e., Guardian Pharmacy and Assure Holdings go up and down completely randomly.

Pair Corralation between Guardian Pharmacy and Assure Holdings

Given the investment horizon of 90 days Guardian Pharmacy Services, is expected to generate 0.34 times more return on investment than Assure Holdings. However, Guardian Pharmacy Services, is 2.97 times less risky than Assure Holdings. It trades about 0.1 of its potential returns per unit of risk. Assure Holdings Corp is currently generating about -0.05 per unit of risk. If you would invest  1,600  in Guardian Pharmacy Services, on October 5, 2024 and sell it today you would earn a total of  389.00  from holding Guardian Pharmacy Services, or generate 24.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	18.58%
Values	Daily Returns

Guardian Pharmacy Services,  vs.  Assure Holdings Corp

Guardian Pharmacy

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Pharmacy Services, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Guardian Pharmacy displayed solid returns over the last few months and may actually be approaching a breakup point.

Assure Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Assure Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Assure Holdings is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Guardian Pharmacy and Assure Holdings

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

The idea behind Guardian Pharmacy Services, and Assure Holdings Corp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.