Correlation Between Guardian Canadian and Guardian International
Can any of the company-specific risk be diversified away by investing in both Guardian Canadian and Guardian International 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 Canadian and Guardian International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian Canadian Bond and Guardian International Equity, you can compare the effects of market volatilities on Guardian Canadian and Guardian International 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 Canadian with a short position of Guardian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Canadian and Guardian International.
Diversification Opportunities for Guardian Canadian and Guardian International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guardian and Guardian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Canadian Bond and Guardian International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian International and Guardian Canadian 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 Canadian Bond are associated (or correlated) with Guardian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian International has no effect on the direction of Guardian Canadian i.e., Guardian Canadian and Guardian International go up and down completely randomly.
Pair Corralation between Guardian Canadian and Guardian International
Assuming the 90 days trading horizon Guardian Canadian Bond is expected to generate 0.52 times more return on investment than Guardian International. However, Guardian Canadian Bond is 1.92 times less risky than Guardian International. It trades about 0.13 of its potential returns per unit of risk. Guardian International Equity is currently generating about -0.02 per unit of risk. If you would invest 1,757 in Guardian Canadian Bond on September 1, 2024 and sell it today you would earn a total of 109.00 from holding Guardian Canadian Bond or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Canadian Bond vs. Guardian International Equity
Performance |
| Timeline |
| Guardian Canadian Bond |
| Guardian International |
Guardian Canadian and Guardian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Canadian and Guardian International
The main advantage of trading using opposite Guardian Canadian and Guardian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Canadian position performs unexpectedly, Guardian International 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 Guardian International will offset losses from the drop in Guardian International's long position.| Guardian Canadian vs. BetaPro Gold Bullion | Guardian Canadian vs. BetaPro SP TSX | Guardian Canadian vs. BetaPro SPTSX Capped | Guardian Canadian vs. Global X Active |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |