Correlation Between Data Modul and GUARDANT HEALTH

Can any of the company-specific risk be diversified away by investing in both Data Modul and GUARDANT 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 Data Modul and GUARDANT HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Data Modul AG and GUARDANT HEALTH CL, you can compare the effects of market volatilities on Data Modul and GUARDANT 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 Data Modul with a short position of GUARDANT HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and GUARDANT HEALTH.

Diversification Opportunities for Data Modul and GUARDANT HEALTH

0.01

Correlation Coefficient

Data Modul  GUARDANT HEALTH

Significant diversification

The 3 months correlation between Data and GUARDANT is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and GUARDANT HEALTH CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUARDANT HEALTH CL and Data Modul 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 Data Modul AG are associated (or correlated) with GUARDANT HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUARDANT HEALTH CL has no effect on the direction of Data Modul i.e., Data Modul and GUARDANT HEALTH go up and down completely randomly.

Pair Corralation between Data Modul and GUARDANT HEALTH

Assuming the 90 days trading horizon Data Modul AG is expected to under-perform the GUARDANT HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Data Modul AG is 1.52 times less risky than GUARDANT HEALTH. The stock trades about -0.01 of its potential returns per unit of risk. The GUARDANT HEALTH CL is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,689  in GUARDANT HEALTH CL on April 21, 2025 and sell it today you would earn a total of  368.00  from holding GUARDANT HEALTH CL or generate 9.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Data Modul AG  vs.  GUARDANT HEALTH CL

Data Modul AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Data Modul AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Data Modul is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

GUARDANT HEALTH CL

Risk-Adjusted Performance

Modest

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

Pair Trading with Data Modul and GUARDANT HEALTH

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

The idea behind Data Modul AG and GUARDANT HEALTH CL 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 Global Correlations module to find global opportunities by holding instruments from different markets.