Correlation Between GUARDANT HEALTH and AMALGAMATED FIN

Can any of the company-specific risk be diversified away by investing in both GUARDANT HEALTH and AMALGAMATED FIN 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 AMALGAMATED FIN 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 AMALGAMATED FIN DL 01, you can compare the effects of market volatilities on GUARDANT HEALTH and AMALGAMATED FIN 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 AMALGAMATED FIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUARDANT HEALTH and AMALGAMATED FIN.

Diversification Opportunities for GUARDANT HEALTH and AMALGAMATED FIN

0.0

Correlation Coefficient

GUARDANT HEALTH  AMALGAMATED FIN

Pay attention - limited upside

The 3 months correlation between GUARDANT and AMALGAMATED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUARDANT HEALTH CL and AMALGAMATED FIN DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMALGAMATED FIN DL 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 AMALGAMATED FIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMALGAMATED FIN DL has no effect on the direction of GUARDANT HEALTH i.e., GUARDANT HEALTH and AMALGAMATED FIN go up and down completely randomly.

Pair Corralation between GUARDANT HEALTH and AMALGAMATED FIN

If you would invest  3,988  in GUARDANT HEALTH CL on April 24, 2025 and sell it today you would lose (10.00) from holding GUARDANT HEALTH CL or give up 0.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

GUARDANT HEALTH CL  vs.  AMALGAMATED FIN DL 01

GUARDANT HEALTH CL

Risk-Adjusted Performance

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.

AMALGAMATED FIN DL

Risk-Adjusted Performance

Good

Over the last 90 days AMALGAMATED FIN DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, AMALGAMATED FIN is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GUARDANT HEALTH and AMALGAMATED FIN

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

The idea behind GUARDANT HEALTH CL and AMALGAMATED FIN DL 01 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.