Correlation Between Bell Food and Guaranty Trust
Can any of the company-specific risk be diversified away by investing in both Bell Food and Guaranty Trust 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 Bell Food and Guaranty Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Food Group and Guaranty Trust Holding, you can compare the effects of market volatilities on Bell Food and Guaranty Trust 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 Bell Food with a short position of Guaranty Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Food and Guaranty Trust.
Diversification Opportunities for Bell Food and Guaranty Trust
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bell and Guaranty is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bell Food Group and Guaranty Trust Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guaranty Trust Holding and Bell Food 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 Bell Food Group are associated (or correlated) with Guaranty Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guaranty Trust Holding has no effect on the direction of Bell Food i.e., Bell Food and Guaranty Trust go up and down completely randomly.
Pair Corralation between Bell Food and Guaranty Trust
Assuming the 90 days trading horizon Bell Food Group is expected to under-perform the Guaranty Trust. But the stock apears to be less risky and, when comparing its historical volatility, Bell Food Group is 4.57 times less risky than Guaranty Trust. The stock trades about -0.19 of its potential returns per unit of risk. The Guaranty Trust Holding is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Guaranty Trust Holding on December 8, 2024 and sell it today you would lose (18.00) from holding Guaranty Trust Holding or give up 8.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bell Food Group vs. Guaranty Trust Holding
Performance |
| Timeline |
| Bell Food Group |
| Guaranty Trust Holding |
Bell Food and Guaranty Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Food and Guaranty Trust
The main advantage of trading using opposite Bell Food and Guaranty Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Food position performs unexpectedly, Guaranty Trust 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 Guaranty Trust will offset losses from the drop in Guaranty Trust's long position.| Bell Food vs. Edinburgh Investment Trust | ||
| Bell Food vs. Lowland Investment Co | ||
| Bell Food vs. Vietnam Enterprise Investments | ||
| Bell Food vs. Livermore Investments Group |
| Guaranty Trust vs. AcadeMedia AB | ||
| Guaranty Trust vs. Silvercorp Metals | ||
| Guaranty Trust vs. Fulcrum Metals PLC | ||
| Guaranty Trust vs. Adriatic Metals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |