Correlation Between GUARDANT HEALTH and CarMax
Can any of the company-specific risk be diversified away by investing in both GUARDANT HEALTH and CarMax 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 CarMax 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 CarMax Inc, you can compare the effects of market volatilities on GUARDANT HEALTH and CarMax 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 CarMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUARDANT HEALTH and CarMax.
Diversification Opportunities for GUARDANT HEALTH and CarMax
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUARDANT and CarMax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUARDANT HEALTH CL and CarMax Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarMax Inc 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 CarMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarMax Inc has no effect on the direction of GUARDANT HEALTH i.e., GUARDANT HEALTH and CarMax go up and down completely randomly.
Pair Corralation between GUARDANT HEALTH and CarMax
If you would invest 2,095 in GUARDANT HEALTH CL on September 4, 2024 and sell it today you would earn a total of 1,223 from holding GUARDANT HEALTH CL or generate 58.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GUARDANT HEALTH CL vs. CarMax Inc
Performance |
| Timeline |
| GUARDANT HEALTH CL |
| CarMax Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GUARDANT HEALTH and CarMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUARDANT HEALTH and CarMax
The main advantage of trading using opposite GUARDANT HEALTH and CarMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUARDANT HEALTH position performs unexpectedly, CarMax 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 CarMax will offset losses from the drop in CarMax's long position.| GUARDANT HEALTH vs. Thermo Fisher Scientific | GUARDANT HEALTH vs. Danaher | GUARDANT HEALTH vs. Danaher | GUARDANT HEALTH vs. SIEMENS HEALTH ADR050 |
| CarMax vs. COMBA TELECOM SYST | CarMax vs. AM EAGLE OUTFITTERS | CarMax vs. Performance Food Group | CarMax vs. Gamma Communications plc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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