Correlation Between Crispr Therapeutics and Guardant Health

Can any of the company-specific risk be diversified away by investing in both Crispr Therapeutics 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 Crispr Therapeutics and Guardant Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Crispr Therapeutics AG and Guardant Health, you can compare the effects of market volatilities on Crispr Therapeutics 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 Crispr Therapeutics with a short position of Guardant Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crispr Therapeutics and Guardant Health.

Diversification Opportunities for Crispr Therapeutics and Guardant Health

0.41

Correlation Coefficient

Crispr Therapeutics  Guardant Health

Very weak diversification

The 3 months correlation between Crispr and Guardant is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Crispr Therapeutics AG and Guardant Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardant Health and Crispr Therapeutics 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 Crispr Therapeutics 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 has no effect on the direction of Crispr Therapeutics i.e., Crispr Therapeutics and Guardant Health go up and down completely randomly.

Pair Corralation between Crispr Therapeutics and Guardant Health

Given the investment horizon of 90 days Crispr Therapeutics AG is expected to generate 1.18 times more return on investment than Guardant Health. However, Crispr Therapeutics is 1.18 times more volatile than Guardant Health. It trades about 0.2 of its potential returns per unit of risk. Guardant Health is currently generating about 0.16 per unit of risk. If you would invest  3,560  in Crispr Therapeutics AG on May 14, 2025 and sell it today you would earn a total of  2,002  from holding Crispr Therapeutics AG or generate 56.24% return on investment over 90 days.

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

Crispr Therapeutics AG  vs.  Guardant Health

Crispr Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Crispr Therapeutics AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Crispr Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Guardant Health

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guardant Health are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain technical indicators, Guardant Health demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Crispr Therapeutics and Guardant Health

The main advantage of trading using opposite Crispr Therapeutics and Guardant Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crispr Therapeutics 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 Crispr Therapeutics AG and Guardant Health 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 Commodity Directory module to find actively traded commodities issued by global exchanges.