Correlation Between Grupo Carso and GUARDANT HEALTH
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and GUARDANT 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 Grupo Carso and GUARDANT HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and GUARDANT HEALTH CL, you can compare the effects of market volatilities on Grupo Carso and GUARDANT 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 Grupo Carso with a short position of GUARDANT HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and GUARDANT HEALTH.
Diversification Opportunities for Grupo Carso and GUARDANT HEALTH
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and GUARDANT is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and GUARDANT HEALTH CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUARDANT HEALTH CL and Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with GUARDANT HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUARDANT HEALTH CL has no effect on the direction of Grupo Carso i.e., Grupo Carso and GUARDANT HEALTH go up and down completely randomly.
Pair Corralation between Grupo Carso and GUARDANT HEALTH
Assuming the 90 days horizon Grupo Carso is expected to generate 6.77 times less return on investment than GUARDANT HEALTH. But when comparing it to its historical volatility, Grupo Carso SAB is 1.24 times less risky than GUARDANT HEALTH. It trades about 0.01 of its potential returns per unit of risk. GUARDANT HEALTH CL is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,280 in GUARDANT HEALTH CL on August 26, 2024 and sell it today you would earn a total of 611.00 from holding GUARDANT HEALTH CL or generate 26.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. GUARDANT HEALTH CL
Performance |
| Timeline |
| Grupo Carso SAB |
| GUARDANT HEALTH CL |
Grupo Carso and GUARDANT HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and GUARDANT HEALTH
The main advantage of trading using opposite Grupo Carso and GUARDANT HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, GUARDANT 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 GUARDANT HEALTH will offset losses from the drop in GUARDANT HEALTH's long position.| Grupo Carso vs. Superior Plus Corp | Grupo Carso vs. NMI Holdings | Grupo Carso vs. Origin Agritech | Grupo Carso vs. SIVERS SEMICONDUCTORS AB |
| GUARDANT HEALTH vs. Grupo Carso SAB | GUARDANT HEALTH vs. IDP EDUCATION LTD | GUARDANT HEALTH vs. TAL Education Group | GUARDANT HEALTH vs. Xinhua Winshare Publishing |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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