Correlation Between Guardian Capital and Cardiff Lexington
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Cardiff Lexington 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 Cardiff Lexington 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 Cardiff Lexington Corp, you can compare the effects of market volatilities on Guardian Capital and Cardiff Lexington 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 Cardiff Lexington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Cardiff Lexington.
Diversification Opportunities for Guardian Capital and Cardiff Lexington
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guardian and Cardiff is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Cardiff Lexington Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardiff Lexington Corp 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 Cardiff Lexington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardiff Lexington Corp has no effect on the direction of Guardian Capital i.e., Guardian Capital and Cardiff Lexington go up and down completely randomly.
Pair Corralation between Guardian Capital and Cardiff Lexington
Assuming the 90 days horizon Guardian Capital Group is expected to under-perform the Cardiff Lexington. But the pink sheet apears to be less risky and, when comparing its historical volatility, Guardian Capital Group is 7.07 times less risky than Cardiff Lexington. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Cardiff Lexington Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Cardiff Lexington Corp on August 31, 2024 and sell it today you would lose (50.00) from holding Cardiff Lexington Corp or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.43% |
| Values | Daily Returns |
Guardian Capital Group vs. Cardiff Lexington Corp
Performance |
| Timeline |
| Guardian Capital |
| Cardiff Lexington Corp |
Guardian Capital and Cardiff Lexington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Cardiff Lexington
The main advantage of trading using opposite Guardian Capital and Cardiff Lexington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Cardiff Lexington 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 Cardiff Lexington will offset losses from the drop in Cardiff Lexington's long position.| Guardian Capital vs. Flow Capital Corp | Guardian Capital vs. Blackhawk Growth Corp | Guardian Capital vs. Urbana | Guardian Capital vs. Princeton Capital |
| Cardiff Lexington vs. Blackhawk Growth Corp | Cardiff Lexington vs. Guardian Capital Group | Cardiff Lexington vs. Flow Capital Corp | Cardiff Lexington vs. Princeton Capital |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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