Correlation Between Guardian Capital and Azimut Holding
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Azimut Holding 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 Guardian Capital and Azimut Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian Capital Group and Azimut Holding SpA, you can compare the effects of market volatilities on Guardian Capital and Azimut Holding 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 Guardian Capital with a short position of Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Azimut Holding.
Diversification Opportunities for Guardian Capital and Azimut Holding
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guardian and Azimut is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA and Guardian 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 Guardian Capital Group are associated (or correlated) with Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of Guardian Capital i.e., Guardian Capital and Azimut Holding go up and down completely randomly.
Pair Corralation between Guardian Capital and Azimut Holding
Assuming the 90 days horizon Guardian Capital Group is expected to generate 0.8 times more return on investment than Azimut Holding. However, Guardian Capital Group is 1.25 times less risky than Azimut Holding. It trades about 0.05 of its potential returns per unit of risk. Azimut Holding SpA is currently generating about 0.0 per unit of risk. If you would invest 2,084 in Guardian Capital Group on August 28, 2024 and sell it today you would earn a total of 842.00 from holding Guardian Capital Group or generate 40.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 37.61% |
| Values | Daily Returns |
Guardian Capital Group vs. Azimut Holding SpA
Performance |
| Timeline |
| Guardian Capital |
| Azimut Holding SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guardian Capital and Azimut Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Azimut Holding
The main advantage of trading using opposite Guardian Capital and Azimut Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Azimut Holding 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 Azimut Holding will offset losses from the drop in Azimut Holding's long position.| Guardian Capital vs. Invesco High Income | Guardian Capital vs. Blackrock Muniholdings Ny | Guardian Capital vs. MFS Investment Grade | Guardian Capital vs. Federated Premier Municipal |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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