Correlation Between Guardian Capital and Investor
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Investor 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 Investor 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 Investor AB, you can compare the effects of market volatilities on Guardian Capital and Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Investor.
Diversification Opportunities for Guardian Capital and Investor
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guardian and Investor is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Investor AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor AB 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB has no effect on the direction of Guardian Capital i.e., Guardian Capital and Investor go up and down completely randomly.
Pair Corralation between Guardian Capital and Investor
Assuming the 90 days horizon Guardian Capital Group is expected to under-perform the Investor. In addition to that, Guardian Capital is 1.12 times more volatile than Investor AB. It trades about 0.0 of its total potential returns per unit of risk. Investor AB is currently generating about 0.07 per unit of volatility. If you would invest 2,164 in Investor AB on September 3, 2024 and sell it today you would earn a total of 502.00 from holding Investor AB or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.56% |
| Values | Daily Returns |
Guardian Capital Group vs. Investor AB
Performance |
| Timeline |
| Guardian Capital |
| Investor AB |
Guardian Capital and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Investor
The main advantage of trading using opposite Guardian Capital and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor's long position.| Guardian Capital vs. Flow Capital Corp | Guardian Capital vs. Blackhawk Growth Corp | Guardian Capital vs. Urbana | Guardian Capital vs. Princeton Capital |
| Investor vs. Brookfield Real Assets | Investor vs. T Rowe Price | Investor vs. Ares Capital | Investor vs. BlackRock |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |