Correlation Between GUARDANT HEALTH and Penta Ocean
Can any of the company-specific risk be diversified away by investing in both GUARDANT HEALTH and Penta Ocean 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 Penta Ocean 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 Penta Ocean Construction Co, you can compare the effects of market volatilities on GUARDANT HEALTH and Penta Ocean 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 Penta Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUARDANT HEALTH and Penta Ocean.
Diversification Opportunities for GUARDANT HEALTH and Penta Ocean
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GUARDANT and Penta is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GUARDANT HEALTH CL and Penta Ocean Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Ocean Construc 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 Penta Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Ocean Construc has no effect on the direction of GUARDANT HEALTH i.e., GUARDANT HEALTH and Penta Ocean go up and down completely randomly.
Pair Corralation between GUARDANT HEALTH and Penta Ocean
Assuming the 90 days horizon GUARDANT HEALTH CL is expected to generate 2.72 times more return on investment than Penta Ocean. However, GUARDANT HEALTH is 2.72 times more volatile than Penta Ocean Construction Co. It trades about 0.23 of its potential returns per unit of risk. Penta Ocean Construction Co is currently generating about 0.1 per unit of risk. If you would invest 2,739 in GUARDANT HEALTH CL on September 13, 2024 and sell it today you would earn a total of 626.00 from holding GUARDANT HEALTH CL or generate 22.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUARDANT HEALTH CL vs. Penta Ocean Construction Co
Performance |
| Timeline |
| GUARDANT HEALTH CL |
| Penta Ocean Construc |
GUARDANT HEALTH and Penta Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUARDANT HEALTH and Penta Ocean
The main advantage of trading using opposite GUARDANT HEALTH and Penta Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUARDANT HEALTH position performs unexpectedly, Penta Ocean 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 Penta Ocean will offset losses from the drop in Penta Ocean's long position.| GUARDANT HEALTH vs. DexCom Inc | GUARDANT HEALTH vs. IDEXX Laboratories | GUARDANT HEALTH vs. Superior Plus Corp | GUARDANT HEALTH vs. NMI Holdings |
| Penta Ocean vs. Superior Plus Corp | Penta Ocean vs. SIVERS SEMICONDUCTORS AB | Penta Ocean vs. Norsk Hydro ASA | Penta Ocean vs. Reliance Steel Aluminum |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |