Correlation Between Guardian Capital and Urbana
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Urbana 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 Urbana 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 Urbana, you can compare the effects of market volatilities on Guardian Capital and Urbana 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 Urbana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Urbana.
Diversification Opportunities for Guardian Capital and Urbana
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardian and Urbana is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Urbana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urbana 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 Urbana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urbana has no effect on the direction of Guardian Capital i.e., Guardian Capital and Urbana go up and down completely randomly.
Pair Corralation between Guardian Capital and Urbana
Assuming the 90 days horizon Guardian Capital is expected to generate 5.4 times less return on investment than Urbana. But when comparing it to its historical volatility, Guardian Capital Group is 2.57 times less risky than Urbana. It trades about 0.12 of its potential returns per unit of risk. Urbana is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Urbana on August 27, 2024 and sell it today you would earn a total of 29.00 from holding Urbana or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Capital Group vs. Urbana
Performance |
| Timeline |
| Guardian Capital |
| Urbana |
Guardian Capital and Urbana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Urbana
The main advantage of trading using opposite Guardian Capital and Urbana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Urbana 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 Urbana will offset losses from the drop in Urbana'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 |
| Urbana vs. Blackstone Group | Urbana vs. BlackRock | Urbana vs. Apollo Global Management | Urbana vs. Bank of New |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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