Correlation Between GUARDANT HEALTH and SUNCOKE ENERGY
Can any of the company-specific risk be diversified away by investing in both GUARDANT HEALTH and SUNCOKE ENERGY 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 SUNCOKE ENERGY 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 SUNCOKE ENERGY, you can compare the effects of market volatilities on GUARDANT HEALTH and SUNCOKE ENERGY 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 SUNCOKE ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUARDANT HEALTH and SUNCOKE ENERGY.
Diversification Opportunities for GUARDANT HEALTH and SUNCOKE ENERGY
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GUARDANT and SUNCOKE is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding GUARDANT HEALTH CL and SUNCOKE ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNCOKE ENERGY 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 SUNCOKE ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNCOKE ENERGY has no effect on the direction of GUARDANT HEALTH i.e., GUARDANT HEALTH and SUNCOKE ENERGY go up and down completely randomly.
Pair Corralation between GUARDANT HEALTH and SUNCOKE ENERGY
Assuming the 90 days horizon GUARDANT HEALTH CL is expected to generate 1.62 times more return on investment than SUNCOKE ENERGY. However, GUARDANT HEALTH is 1.62 times more volatile than SUNCOKE ENERGY. It trades about 0.05 of its potential returns per unit of risk. SUNCOKE ENERGY is currently generating about 0.06 per unit of risk. If you would invest 2,580 in GUARDANT HEALTH CL on September 12, 2024 and sell it today you would earn a total of 899.00 from holding GUARDANT HEALTH CL or generate 34.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUARDANT HEALTH CL vs. SUNCOKE ENERGY
Performance |
| Timeline |
| GUARDANT HEALTH CL |
| SUNCOKE ENERGY |
GUARDANT HEALTH and SUNCOKE ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUARDANT HEALTH and SUNCOKE ENERGY
The main advantage of trading using opposite GUARDANT HEALTH and SUNCOKE ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUARDANT HEALTH position performs unexpectedly, SUNCOKE ENERGY 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 SUNCOKE ENERGY will offset losses from the drop in SUNCOKE ENERGY's long position.| GUARDANT HEALTH vs. DexCom Inc | GUARDANT HEALTH vs. IDEXX Laboratories | GUARDANT HEALTH vs. Superior Plus Corp | GUARDANT HEALTH vs. NMI Holdings |
| SUNCOKE ENERGY vs. Lion One Metals | SUNCOKE ENERGY vs. Aluminum of | SUNCOKE ENERGY vs. ULTRA CLEAN HLDGS | SUNCOKE ENERGY vs. GUARDANT HEALTH CL |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |