Correlation Between Com GuardCom and Group 1
Can any of the company-specific risk be diversified away by investing in both Com GuardCom and Group 1 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 Com GuardCom and Group 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com GuardCom and Group 1 Automotive, you can compare the effects of market volatilities on Com GuardCom and Group 1 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 Com GuardCom with a short position of Group 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com GuardCom and Group 1.
Diversification Opportunities for Com GuardCom and Group 1
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Com and Group is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Com GuardCom and Group 1 Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 1 Automotive and Com GuardCom 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 Com GuardCom are associated (or correlated) with Group 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 1 Automotive has no effect on the direction of Com GuardCom i.e., Com GuardCom and Group 1 go up and down completely randomly.
Pair Corralation between Com GuardCom and Group 1
Given the investment horizon of 90 days Com GuardCom is expected to generate 7.23 times more return on investment than Group 1. However, Com GuardCom is 7.23 times more volatile than Group 1 Automotive. It trades about 0.08 of its potential returns per unit of risk. Group 1 Automotive is currently generating about -0.15 per unit of risk. If you would invest 0.08 in Com GuardCom on August 22, 2025 and sell it today you would earn a total of 0.02 from holding Com GuardCom or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com GuardCom vs. Group 1 Automotive
Performance |
| Timeline |
| Com GuardCom |
| Group 1 Automotive |
Com GuardCom and Group 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com GuardCom and Group 1
The main advantage of trading using opposite Com GuardCom and Group 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com GuardCom position performs unexpectedly, Group 1 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 Group 1 will offset losses from the drop in Group 1's long position.| Com GuardCom vs. Pennexx Foods | Com GuardCom vs. Ehave Inc | Com GuardCom vs. Danavation Technologies Corp | Com GuardCom vs. Defentect Group |
| Group 1 vs. Asbury Automotive Group | Group 1 vs. Gentex | Group 1 vs. Rush Enterprises A | Group 1 vs. Lucid 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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