Correlation Between Alaska Energy and Guardian Capital
Can any of the company-specific risk be diversified away by investing in both Alaska Energy and Guardian Capital 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 Alaska Energy and Guardian Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Energy Metals and Guardian Capital Group, you can compare the effects of market volatilities on Alaska Energy and Guardian Capital 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 Alaska Energy with a short position of Guardian Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Energy and Guardian Capital.
Diversification Opportunities for Alaska Energy and Guardian Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alaska and Guardian is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Energy Metals and Guardian Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Capital and Alaska Energy 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 Alaska Energy Metals are associated (or correlated) with Guardian Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Capital has no effect on the direction of Alaska Energy i.e., Alaska Energy and Guardian Capital go up and down completely randomly.
Pair Corralation between Alaska Energy and Guardian Capital
Assuming the 90 days trading horizon Alaska Energy Metals is expected to under-perform the Guardian Capital. In addition to that, Alaska Energy is 4.82 times more volatile than Guardian Capital Group. It trades about -0.31 of its total potential returns per unit of risk. Guardian Capital Group is currently generating about -0.2 per unit of volatility. If you would invest 4,525 in Guardian Capital Group on November 29, 2024 and sell it today you would lose (205.00) from holding Guardian Capital Group or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alaska Energy Metals vs. Guardian Capital Group
Performance |
| Timeline |
| Alaska Energy Metals |
| Guardian Capital |
Alaska Energy and Guardian Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Energy and Guardian Capital
The main advantage of trading using opposite Alaska Energy and Guardian Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Energy position performs unexpectedly, Guardian Capital 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 Guardian Capital will offset losses from the drop in Guardian Capital's long position.| Alaska Energy vs. Ramp Metals | Alaska Energy vs. Perseus Mining | Alaska Energy vs. Kootenay Silver | Alaska Energy vs. Marimaca Copper Corp |
| Guardian Capital vs. Guardian Capital Group | Guardian Capital vs. Clairvest Group | Guardian Capital vs. E L Financial Corp | Guardian Capital vs. Accord Financial Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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