Correlation Between Guaranty Trust and Albion Technology
Can any of the company-specific risk be diversified away by investing in both Guaranty Trust and Albion Technology 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 Guaranty Trust and Albion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guaranty Trust Holding and Albion Technology General, you can compare the effects of market volatilities on Guaranty Trust and Albion Technology 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 Guaranty Trust with a short position of Albion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guaranty Trust and Albion Technology.
Diversification Opportunities for Guaranty Trust and Albion Technology
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guaranty and Albion is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guaranty Trust Holding and Albion Technology General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albion Technology General and Guaranty Trust 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 Guaranty Trust Holding are associated (or correlated) with Albion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albion Technology General has no effect on the direction of Guaranty Trust i.e., Guaranty Trust and Albion Technology go up and down completely randomly.
Pair Corralation between Guaranty Trust and Albion Technology
If you would invest 190.00 in Guaranty Trust Holding on November 2, 2024 and sell it today you would earn a total of 18.00 from holding Guaranty Trust Holding or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guaranty Trust Holding vs. Albion Technology General
Performance |
| Timeline |
| Guaranty Trust Holding |
| Albion Technology General |
Guaranty Trust and Albion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guaranty Trust and Albion Technology
The main advantage of trading using opposite Guaranty Trust and Albion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guaranty Trust position performs unexpectedly, Albion Technology 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 Albion Technology will offset losses from the drop in Albion Technology's long position.| Guaranty Trust vs. JLEN Environmental Assets | Guaranty Trust vs. Aeorema Communications Plc | Guaranty Trust vs. Batm Advanced Communications | Guaranty Trust vs. Veolia Environnement VE |
| Albion Technology vs. Spirent Communications plc | Albion Technology vs. Zegona Communications Plc | Albion Technology vs. Universal Display Corp | Albion Technology vs. AcadeMedia AB |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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