Correlation Between Guardian Capital and 3i Group
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and 3i Group 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 3i Group 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 3i Group plc, you can compare the effects of market volatilities on Guardian Capital and 3i Group 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 3i Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and 3i Group.
Diversification Opportunities for Guardian Capital and 3i Group
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guardian and TGOPF is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and 3i Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3i Group plc 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 3i Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3i Group plc has no effect on the direction of Guardian Capital i.e., Guardian Capital and 3i Group go up and down completely randomly.
Pair Corralation between Guardian Capital and 3i Group
Assuming the 90 days horizon Guardian Capital Group is expected to under-perform the 3i Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Guardian Capital Group is 1.15 times less risky than 3i Group. The pink sheet trades about -0.06 of its potential returns per unit of risk. The 3i Group plc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,525 in 3i Group plc on September 3, 2024 and sell it today you would earn a total of 1,280 from holding 3i Group plc or generate 36.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Capital Group vs. 3i Group plc
Performance |
| Timeline |
| Guardian Capital |
| 3i Group plc |
Guardian Capital and 3i Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and 3i Group
The main advantage of trading using opposite Guardian Capital and 3i Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, 3i Group 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 3i Group will offset losses from the drop in 3i Group's long position.| Guardian Capital vs. Flow Capital Corp | Guardian Capital vs. Blackhawk Growth Corp | Guardian Capital vs. Urbana | Guardian Capital vs. Princeton Capital |
| 3i Group vs. Partners Group | 3i Group vs. Burford Capital | 3i Group vs. PennantPark Investment | 3i Group vs. 3i Group PLC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |