Correlation Between Guardian Capital and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Coca Cola 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 Capital and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian Capital Group and Coca Cola CDR, you can compare the effects of market volatilities on Guardian Capital and Coca Cola 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 Capital with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Coca Cola.
Diversification Opportunities for Guardian Capital and Coca Cola
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guardian and Coca is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Coca Cola CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola CDR and Guardian Capital 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 Capital Group are associated (or correlated) with Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola CDR has no effect on the direction of Guardian Capital i.e., Guardian Capital and Coca Cola go up and down completely randomly.
Pair Corralation between Guardian Capital and Coca Cola
Assuming the 90 days trading horizon Guardian Capital Group is expected to generate 7.04 times more return on investment than Coca Cola. However, Guardian Capital is 7.04 times more volatile than Coca Cola CDR. It trades about 0.14 of its potential returns per unit of risk. Coca Cola CDR is currently generating about -0.04 per unit of risk. If you would invest 4,374 in Guardian Capital Group on July 20, 2025 and sell it today you would earn a total of 2,296 from holding Guardian Capital Group or generate 52.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Capital Group vs. Coca Cola CDR
Performance |
| Timeline |
| Guardian Capital |
| Coca Cola CDR |
Guardian Capital and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Coca Cola
The main advantage of trading using opposite Guardian Capital and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Guardian Capital vs. Guardian Capital Group | Guardian Capital vs. Clairvest Group | Guardian Capital vs. E L Financial Corp | Guardian Capital vs. Accord Financial Corp |
| Coca Cola vs. Westshore Terminals Investment | Coca Cola vs. Atrium Mortgage Investment | Coca Cola vs. Canaf Investments | Coca Cola vs. Titanium Transportation 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |