Correlation Between Garda Diversified and Liberty Financial
Can any of the company-specific risk be diversified away by investing in both Garda Diversified and Liberty Financial 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 Garda Diversified and Liberty Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garda Diversified Ppty and Liberty Financial Group, you can compare the effects of market volatilities on Garda Diversified and Liberty Financial 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 Garda Diversified with a short position of Liberty Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garda Diversified and Liberty Financial.
Diversification Opportunities for Garda Diversified and Liberty Financial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garda and Liberty is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Garda Diversified Ppty and Liberty Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Financial and Garda Diversified 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 Garda Diversified Ppty are associated (or correlated) with Liberty Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Financial has no effect on the direction of Garda Diversified i.e., Garda Diversified and Liberty Financial go up and down completely randomly.
Pair Corralation between Garda Diversified and Liberty Financial
Assuming the 90 days trading horizon Garda Diversified Ppty is expected to under-perform the Liberty Financial. But the stock apears to be less risky and, when comparing its historical volatility, Garda Diversified Ppty is 1.9 times less risky than Liberty Financial. The stock trades about -0.14 of its potential returns per unit of risk. The Liberty Financial Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 323.00 in Liberty Financial Group on October 14, 2024 and sell it today you would earn a total of 22.00 from holding Liberty Financial Group or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garda Diversified Ppty vs. Liberty Financial Group
Performance |
| Timeline |
| Garda Diversified Ppty |
| Liberty Financial |
Garda Diversified and Liberty Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garda Diversified and Liberty Financial
The main advantage of trading using opposite Garda Diversified and Liberty Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garda Diversified position performs unexpectedly, Liberty Financial 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 Liberty Financial will offset losses from the drop in Liberty Financial's long position.| Garda Diversified vs. Bio Gene Technology | Garda Diversified vs. EMvision Medical Devices | Garda Diversified vs. Ainsworth Game Technology | Garda Diversified vs. Bailador Technology Invest |
| Liberty Financial vs. Maggie Beer Holdings | Liberty Financial vs. AiMedia Technologies | Liberty Financial vs. Southern Cross Media | Liberty Financial vs. Land Homes Group |
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.
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