Correlation Between Guardant Health and Aethlon Medical
Can any of the company-specific risk be diversified away by investing in both Guardant Health and Aethlon Medical 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 Aethlon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardant Health and Aethlon Medical, you can compare the effects of market volatilities on Guardant Health and Aethlon Medical 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 Aethlon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardant Health and Aethlon Medical.
Diversification Opportunities for Guardant Health and Aethlon Medical
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardant and Aethlon is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guardant Health and Aethlon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aethlon Medical 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 are associated (or correlated) with Aethlon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aethlon Medical has no effect on the direction of Guardant Health i.e., Guardant Health and Aethlon Medical go up and down completely randomly.
Pair Corralation between Guardant Health and Aethlon Medical
Allowing for the 90-day total investment horizon Guardant Health is expected to generate 1.46 times more return on investment than Aethlon Medical. However, Guardant Health is 1.46 times more volatile than Aethlon Medical. It trades about 0.27 of its potential returns per unit of risk. Aethlon Medical is currently generating about -0.09 per unit of risk. If you would invest 2,896 in Guardant Health on September 19, 2024 and sell it today you would earn a total of 554.00 from holding Guardant Health or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardant Health vs. Aethlon Medical
Performance |
| Timeline |
| Guardant Health |
| Aethlon Medical |
Guardant Health and Aethlon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardant Health and Aethlon Medical
The main advantage of trading using opposite Guardant Health and Aethlon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardant Health position performs unexpectedly, Aethlon Medical 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 Aethlon Medical will offset losses from the drop in Aethlon Medical's long position.| Guardant Health vs. Illumina | Guardant Health vs. Twist Bioscience Corp | Guardant Health vs. Natera Inc | Guardant Health vs. Caredx Inc |
| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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