Correlation Between GUARDANT HEALTH and Pets At

Can any of the company-specific risk be diversified away by investing in both GUARDANT HEALTH and Pets At 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 Pets At 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 Pets at Home, you can compare the effects of market volatilities on GUARDANT HEALTH and Pets At 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 Pets At. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUARDANT HEALTH and Pets At.

Diversification Opportunities for GUARDANT HEALTH and Pets At

-0.09

Correlation Coefficient

GUARDANT HEALTH  Pets At

Good diversification

The 3 months correlation between GUARDANT and Pets is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GUARDANT HEALTH CL and Pets at Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pets at Home 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 Pets At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pets at Home has no effect on the direction of GUARDANT HEALTH i.e., GUARDANT HEALTH and Pets At go up and down completely randomly.

Pair Corralation between GUARDANT HEALTH and Pets At

Assuming the 90 days horizon GUARDANT HEALTH is expected to generate 3.01 times less return on investment than Pets At. In addition to that, GUARDANT HEALTH is 1.83 times more volatile than Pets at Home. It trades about 0.01 of its total potential returns per unit of risk. Pets at Home is currently generating about 0.07 per unit of volatility. If you would invest  263.00  in Pets at Home on April 24, 2025 and sell it today you would earn a total of  16.00  from holding Pets at Home or generate 6.08% 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.  Pets at Home

GUARDANT HEALTH CL

Risk-Adjusted Performance

Very Weak

Over the last 90 days GUARDANT HEALTH CL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GUARDANT HEALTH is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pets at Home

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pets at Home are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Pets At may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with GUARDANT HEALTH and Pets At

The main advantage of trading using opposite GUARDANT HEALTH and Pets At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUARDANT HEALTH position performs unexpectedly, Pets At 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 Pets At will offset losses from the drop in Pets At's long position.

The idea behind GUARDANT HEALTH CL and Pets at Home pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.