Correlation Between Guardian and Guardian Ultra

Can any of the company-specific risk be diversified away by investing in both Guardian and Guardian Ultra 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 and Guardian Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guardian I3 Global and Guardian Ultra Short Canadian, you can compare the effects of market volatilities on Guardian and Guardian Ultra 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 with a short position of Guardian Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian and Guardian Ultra.

Diversification Opportunities for Guardian and Guardian Ultra

0.0

Correlation Coefficient

Guardian  Guardian Ultra

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 I3 Global and Guardian Ultra Short Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Ultra Short and Guardian 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 I3 Global are associated (or correlated) with Guardian Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Ultra Short has no effect on the direction of Guardian i.e., Guardian and Guardian Ultra go up and down completely randomly.

Pair Corralation between Guardian and Guardian Ultra

If you would invest  4,961  in Guardian Ultra Short Canadian on September 15, 2024 and sell it today you would earn a total of  48.00  from holding Guardian Ultra Short Canadian or generate 0.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Guardian I3 Global  vs.  Guardian Ultra Short Canadian

Guardian I3 Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guardian I3 Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Guardian is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Guardian Ultra Short

Risk-Adjusted Performance

60 of 100

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Ultra Short Canadian are ranked lower than 60 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Guardian Ultra is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Guardian and Guardian Ultra

The main advantage of trading using opposite Guardian and Guardian Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian position performs unexpectedly, Guardian Ultra 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 Ultra will offset losses from the drop in Guardian Ultra's long position.

The idea behind Guardian I3 Global and Guardian Ultra Short Canadian pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.