Correlation Between Guardant Health and Cross Country
Can any of the company-specific risk be diversified away by investing in both Guardant Health and Cross Country 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 Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardant Health and Cross Country Healthcare, you can compare the effects of market volatilities on Guardant Health and Cross Country 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 Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardant Health and Cross Country.
Diversification Opportunities for Guardant Health and Cross Country
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guardant and Cross is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guardant Health and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare 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 Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Guardant Health i.e., Guardant Health and Cross Country go up and down completely randomly.
Pair Corralation between Guardant Health and Cross Country
Allowing for the 90-day total investment horizon Guardant Health is expected to generate 1.16 times more return on investment than Cross Country. However, Guardant Health is 1.16 times more volatile than Cross Country Healthcare. It trades about 0.19 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.07 per unit of risk. If you would invest 6,651 in Guardant Health on August 30, 2025 and sell it today you would earn a total of 4,128 from holding Guardant Health or generate 62.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardant Health vs. Cross Country Healthcare
Performance |
| Timeline |
| Guardant Health |
| Cross Country Healthcare |
Guardant Health and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardant Health and Cross Country
The main advantage of trading using opposite Guardant Health and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardant Health position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| Guardant Health vs. Burke Herbert Financial | Guardant Health vs. Kossan Rubber Industries | Guardant Health vs. Caribbean Utilities | Guardant Health vs. Vulcan Materials |
| Cross Country vs. Cardinal Health | Cross Country vs. CVS Health Corp | Cross Country vs. Lamar Advertising | Cross Country vs. Sabra Healthcare REIT |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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