Correlation Between Guardian and Altagas Cum

Can any of the company-specific risk be diversified away by investing in both Guardian and Altagas Cum 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 Altagas Cum 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 Altagas Cum Red, you can compare the effects of market volatilities on Guardian and Altagas Cum 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 Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian and Altagas Cum.

Diversification Opportunities for Guardian and Altagas Cum

0.3

Correlation Coefficient

Guardian  Altagas Cum

Weak diversification

The 3 months correlation between Guardian and Altagas is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guardian i3 Global and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red 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 Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of Guardian i.e., Guardian and Altagas Cum go up and down completely randomly.

Pair Corralation between Guardian and Altagas Cum

Assuming the 90 days trading horizon Guardian i3 Global is expected to under-perform the Altagas Cum. In addition to that, Guardian is 1.76 times more volatile than Altagas Cum Red. It trades about -0.12 of its total potential returns per unit of risk. Altagas Cum Red is currently generating about 0.12 per unit of volatility. If you would invest  1,990  in Altagas Cum Red on December 30, 2024 and sell it today you would earn a total of  107.00  from holding Altagas Cum Red or generate 5.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Guardian i3 Global  vs.  Altagas Cum Red

Guardian i3 Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guardian i3 Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Altagas Cum Red

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Altagas Cum Red are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Altagas Cum is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guardian and Altagas Cum

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

The idea behind Guardian i3 Global and Altagas Cum Red 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.