Correlation Between Guardian Pharmacy and Astrana Health
Can any of the company-specific risk be diversified away by investing in both Guardian Pharmacy and Astrana Health 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 Guardian Pharmacy and Astrana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian Pharmacy Services, and Astrana Health, you can compare the effects of market volatilities on Guardian Pharmacy and Astrana Health 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 Guardian Pharmacy with a short position of Astrana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Pharmacy and Astrana Health.
Diversification Opportunities for Guardian Pharmacy and Astrana Health
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guardian and Astrana is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Pharmacy Services, and Astrana Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrana Health and Guardian Pharmacy 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 Guardian Pharmacy Services, are associated (or correlated) with Astrana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrana Health has no effect on the direction of Guardian Pharmacy i.e., Guardian Pharmacy and Astrana Health go up and down completely randomly.
Pair Corralation between Guardian Pharmacy and Astrana Health
Given the investment horizon of 90 days Guardian Pharmacy Services, is expected to generate 1.21 times more return on investment than Astrana Health. However, Guardian Pharmacy is 1.21 times more volatile than Astrana Health. It trades about 0.24 of its potential returns per unit of risk. Astrana Health is currently generating about 0.03 per unit of risk. If you would invest 1,600 in Guardian Pharmacy Services, on September 12, 2024 and sell it today you would earn a total of 831.00 from holding Guardian Pharmacy Services, or generate 51.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 21.77% |
| Values | Daily Returns |
Guardian Pharmacy Services, vs. Astrana Health
Performance |
| Timeline |
| Guardian Pharmacy |
| Astrana Health |
Guardian Pharmacy and Astrana Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Pharmacy and Astrana Health
The main advantage of trading using opposite Guardian Pharmacy and Astrana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Pharmacy position performs unexpectedly, Astrana Health 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 Astrana Health will offset losses from the drop in Astrana Health's long position.| Guardian Pharmacy vs. Cannae Holdings | Guardian Pharmacy vs. Analog Devices | Guardian Pharmacy vs. Dine Brands Global | Guardian Pharmacy vs. The Cheesecake Factory |
| Astrana Health vs. Fresenius Medical Care | Astrana Health vs. Regional Health Properties | Astrana Health vs. Oncology Institute | Astrana Health vs. Guardian Pharmacy Services, |
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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