Correlation Between GUARDANT HEALTH and ALEFARM BREWING
Can any of the company-specific risk be diversified away by investing in both GUARDANT HEALTH and ALEFARM BREWING 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 ALEFARM BREWING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GUARDANT HEALTH CL and ALEFARM BREWING DK 05, you can compare the effects of market volatilities on GUARDANT HEALTH and ALEFARM BREWING 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 ALEFARM BREWING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUARDANT HEALTH and ALEFARM BREWING.
Diversification Opportunities for GUARDANT HEALTH and ALEFARM BREWING
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GUARDANT and ALEFARM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding GUARDANT HEALTH CL and ALEFARM BREWING DK 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEFARM BREWING DK 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 CL are associated (or correlated) with ALEFARM BREWING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEFARM BREWING DK has no effect on the direction of GUARDANT HEALTH i.e., GUARDANT HEALTH and ALEFARM BREWING go up and down completely randomly.
Pair Corralation between GUARDANT HEALTH and ALEFARM BREWING
Assuming the 90 days horizon GUARDANT HEALTH CL is expected to generate 0.86 times more return on investment than ALEFARM BREWING. However, GUARDANT HEALTH CL is 1.16 times less risky than ALEFARM BREWING. It trades about 0.18 of its potential returns per unit of risk. ALEFARM BREWING DK 05 is currently generating about -0.03 per unit of risk. If you would invest 2,252 in GUARDANT HEALTH CL on September 12, 2024 and sell it today you would earn a total of 1,167 from holding GUARDANT HEALTH CL or generate 51.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUARDANT HEALTH CL vs. ALEFARM BREWING DK 05
Performance |
| Timeline |
| GUARDANT HEALTH CL |
| ALEFARM BREWING DK |
GUARDANT HEALTH and ALEFARM BREWING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUARDANT HEALTH and ALEFARM BREWING
The main advantage of trading using opposite GUARDANT HEALTH and ALEFARM BREWING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUARDANT HEALTH position performs unexpectedly, ALEFARM BREWING 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 ALEFARM BREWING will offset losses from the drop in ALEFARM BREWING's long position.| GUARDANT HEALTH vs. DexCom Inc | GUARDANT HEALTH vs. IDEXX Laboratories | GUARDANT HEALTH vs. Superior Plus Corp | GUARDANT HEALTH vs. NMI Holdings |
| ALEFARM BREWING vs. Corporate Travel Management | ALEFARM BREWING vs. Sumitomo Rubber Industries | ALEFARM BREWING vs. SANOK RUBBER ZY | ALEFARM BREWING vs. Jupiter Fund Management |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |