Correlation Between Guardant Health and Haemonetics
Can any of the company-specific risk be diversified away by investing in both Guardant Health and Haemonetics 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 Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardant Health and Haemonetics, you can compare the effects of market volatilities on Guardant Health and Haemonetics 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 Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardant Health and Haemonetics.
Diversification Opportunities for Guardant Health and Haemonetics
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guardant and Haemonetics is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guardant Health and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics 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 Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of Guardant Health i.e., Guardant Health and Haemonetics go up and down completely randomly.
Pair Corralation between Guardant Health and Haemonetics
Allowing for the 90-day total investment horizon Guardant Health is expected to generate 1.56 times more return on investment than Haemonetics. However, Guardant Health is 1.56 times more volatile than Haemonetics. It trades about 0.27 of its potential returns per unit of risk. Haemonetics is currently generating about 0.04 per unit of risk. If you would invest 2,042 in Guardant Health on September 23, 2024 and sell it today you would earn a total of 1,125 from holding Guardant Health or generate 55.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guardant Health vs. Haemonetics
Performance |
Timeline |
Guardant Health |
Haemonetics |
Guardant Health and Haemonetics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guardant Health and Haemonetics
The main advantage of trading using opposite Guardant Health and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardant Health position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.Guardant Health vs. Illumina | Guardant Health vs. Twist Bioscience Corp | Guardant Health vs. Natera Inc | Guardant Health vs. Caredx Inc |
Haemonetics vs. Cigna Corp | Haemonetics vs. Definitive Healthcare Corp | Haemonetics vs. Guardant Health | Haemonetics vs. Laboratory of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |