Correlation Between Flow Capital and Guardian Capital
Can any of the company-specific risk be diversified away by investing in both Flow Capital 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 Flow Capital and Guardian Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flow Capital Corp and Guardian Capital Group, you can compare the effects of market volatilities on Flow Capital 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 Flow Capital with a short position of Guardian Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Capital and Guardian Capital.
Diversification Opportunities for Flow Capital and Guardian Capital
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flow and Guardian is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Flow Capital Corp and Guardian Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Capital and Flow Capital 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 Flow Capital Corp 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 Flow Capital i.e., Flow Capital and Guardian Capital go up and down completely randomly.
Pair Corralation between Flow Capital and Guardian Capital
If you would invest 2,881 in Guardian Capital Group on August 27, 2024 and sell it today you would earn a total of 39.00 from holding Guardian Capital Group or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Capital Corp vs. Guardian Capital Group
Performance |
| Timeline |
| Flow Capital Corp |
| Guardian Capital |
Flow Capital and Guardian Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Capital and Guardian Capital
The main advantage of trading using opposite Flow Capital and Guardian Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Capital 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.| Flow Capital vs. Invesco High Income | Flow Capital vs. Blackrock Muniholdings Ny | Flow Capital vs. MFS Investment Grade | Flow Capital vs. Federated Premier Municipal |
| Guardian Capital vs. Invesco High Income | Guardian Capital vs. Blackrock Muniholdings Ny | Guardian Capital vs. MFS Investment Grade | Guardian Capital vs. Federated Premier Municipal |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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