Correlation Between Guardian Capital and Rubellite Energy
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Rubellite Energy 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 Rubellite Energy 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 Rubellite Energy, you can compare the effects of market volatilities on Guardian Capital and Rubellite Energy 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 Rubellite Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Rubellite Energy.
Diversification Opportunities for Guardian Capital and Rubellite Energy
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guardian and Rubellite is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Rubellite Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubellite Energy 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 Rubellite Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubellite Energy has no effect on the direction of Guardian Capital i.e., Guardian Capital and Rubellite Energy go up and down completely randomly.
Pair Corralation between Guardian Capital and Rubellite Energy
Assuming the 90 days trading horizon Guardian Capital Group is expected to generate 2.57 times more return on investment than Rubellite Energy. However, Guardian Capital is 2.57 times more volatile than Rubellite Energy. It trades about 0.14 of its potential returns per unit of risk. Rubellite Energy is currently generating about 0.12 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Capital Group vs. Rubellite Energy
Performance |
| Timeline |
| Guardian Capital |
| Rubellite Energy |
Guardian Capital and Rubellite Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Rubellite Energy
The main advantage of trading using opposite Guardian Capital and Rubellite Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Rubellite Energy 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 Rubellite Energy will offset losses from the drop in Rubellite Energy's long position.| Guardian Capital vs. Uniteds Limited | Guardian Capital vs. Laurentian Bank | Guardian Capital vs. Cymbria | Guardian Capital vs. Clairvest Group |
| Rubellite Energy vs. Hemisphere Energy | Rubellite Energy vs. Gran Tierra Energy | Rubellite Energy vs. Journey Energy | Rubellite Energy vs. Sintana Energy |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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