Correlation Between Advantage Oil and Guardian Capital
Can any of the company-specific risk be diversified away by investing in both Advantage Oil and Guardian Capital 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 Advantage Oil and Guardian Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Oil Gas and Guardian Capital Group, you can compare the effects of market volatilities on Advantage Oil and Guardian Capital 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 Advantage Oil with a short position of Guardian Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Oil and Guardian Capital.
Diversification Opportunities for Advantage Oil and Guardian Capital
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advantage and Guardian is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Oil Gas and Guardian Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Capital and Advantage Oil 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 Advantage Oil Gas are associated (or correlated) with Guardian Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Capital has no effect on the direction of Advantage Oil i.e., Advantage Oil and Guardian Capital go up and down completely randomly.
Pair Corralation between Advantage Oil and Guardian Capital
Assuming the 90 days trading horizon Advantage Oil Gas is expected to generate 10.24 times more return on investment than Guardian Capital. However, Advantage Oil is 10.24 times more volatile than Guardian Capital Group. It trades about 0.11 of its potential returns per unit of risk. Guardian Capital Group is currently generating about 0.12 per unit of risk. If you would invest 1,127 in Advantage Oil Gas on August 31, 2025 and sell it today you would earn a total of 131.00 from holding Advantage Oil Gas or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Oil Gas vs. Guardian Capital Group
Performance |
| Timeline |
| Advantage Oil Gas |
| Guardian Capital |
Advantage Oil and Guardian Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Oil and Guardian Capital
The main advantage of trading using opposite Advantage Oil and Guardian Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Oil position performs unexpectedly, Guardian Capital 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 Capital will offset losses from the drop in Guardian Capital's long position.| Advantage Oil vs. Dream Office Real | Advantage Oil vs. Big Rock Brewery | Advantage Oil vs. High Liner Foods | Advantage Oil vs. FTI Foodtech International |
| Guardian Capital vs. Upstart Investments | Guardian Capital vs. Major Drilling Group | Guardian Capital vs. Altair Resources | Guardian Capital vs. DGL Investments No1 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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