Correlation Between Halo Collective and Guardion Health

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

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

Diversification Opportunities for Halo Collective and Guardion Health

0.0

Correlation Coefficient

Halo Collective  Guardion Health

Pay attention - limited upside

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

Pair Corralation between Halo Collective and Guardion Health

If you would invest  329.00  in Guardion Health Sciences on October 8, 2024 and sell it today you would earn a total of  0.00  from holding Guardion Health Sciences or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Halo Collective  vs.  Guardion Health Sciences

Halo Collective

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Halo Collective has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Halo Collective is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Guardion Health Sciences

Risk-Adjusted Performance

0 of 100

Strong

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.

Pair Trading with Halo Collective and Guardion Health

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

The idea behind Halo Collective and Guardion Health Sciences 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.