Correlation Between Guardion Health and Athenex

Can any of the company-specific risk be diversified away by investing in both Guardion Health and Athenex 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 Athenex 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 Athenex, you can compare the effects of market volatilities on Guardion Health and Athenex 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 Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardion Health and Athenex.

Diversification Opportunities for Guardion Health and Athenex

-0.5

Correlation Coefficient

Guardion Health  Athenex

Very good diversification

The 3 months correlation between Guardion and Athenex is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guardion Health Sciences and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex 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 Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of Guardion Health i.e., Guardion Health and Athenex go up and down completely randomly.

Pair Corralation between Guardion Health and Athenex

If you would invest  0.22  in Athenex on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Athenex or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	3.57%
Values	Daily Returns

Guardion Health Sciences  vs.  Athenex

Guardion Health Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guardion Health Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Athenex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athenex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Athenex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guardion Health and Athenex

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

The idea behind Guardion Health Sciences and Athenex 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.