Correlation Between Milestone Scientific and Guardant Health

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

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

Diversification Opportunities for Milestone Scientific and Guardant Health

-0.42

Correlation Coefficient

Milestone Scientific  Guardant Health

Very good diversification

The 3 months correlation between Milestone and Guardant is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and Guardant Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardant Health and Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific i.e., Milestone Scientific and Guardant Health go up and down completely randomly.

Pair Corralation between Milestone Scientific and Guardant Health

Given the investment horizon of 90 days Milestone Scientific is expected to under-perform the Guardant Health. In addition to that, Milestone Scientific is 1.62 times more volatile than Guardant Health. It trades about -0.28 of its total potential returns per unit of risk. Guardant Health is currently generating about -0.01 per unit of volatility. If you would invest  4,685  in Guardant Health on May 2, 2025 and sell it today you would lose (166.00) from holding Guardant Health or give up 3.54% of portfolio value over 90 days.

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

Milestone Scientific  vs.  Guardant Health

Milestone Scientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days Milestone Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Guardant Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guardant Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Guardant Health is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Milestone Scientific and Guardant Health

The main advantage of trading using opposite Milestone Scientific and Guardant Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milestone Scientific 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 Milestone Scientific 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.

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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.