Correlation Between Guardian Capital and Alignvest Acquisition
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Alignvest Acquisition 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 Alignvest Acquisition 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 Alignvest Acquisition II, you can compare the effects of market volatilities on Guardian Capital and Alignvest Acquisition 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 Alignvest Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Alignvest Acquisition.
Diversification Opportunities for Guardian Capital and Alignvest Acquisition
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guardian and Alignvest is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Alignvest Acquisition II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alignvest Acquisition 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 Alignvest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alignvest Acquisition has no effect on the direction of Guardian Capital i.e., Guardian Capital and Alignvest Acquisition go up and down completely randomly.
Pair Corralation between Guardian Capital and Alignvest Acquisition
Assuming the 90 days trading horizon Guardian Capital Group is expected to generate 2.83 times more return on investment than Alignvest Acquisition. However, Guardian Capital is 2.83 times more volatile than Alignvest Acquisition II. It trades about 0.15 of its potential returns per unit of risk. Alignvest Acquisition II is currently generating about 0.04 per unit of risk. If you would invest 4,301 in Guardian Capital Group on July 24, 2025 and sell it today you would earn a total of 2,389 from holding Guardian Capital Group or generate 55.55% 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. Alignvest Acquisition II
Performance |
| Timeline |
| Guardian Capital |
| Alignvest Acquisition |
Guardian Capital and Alignvest Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Alignvest Acquisition
The main advantage of trading using opposite Guardian Capital and Alignvest Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Alignvest Acquisition 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 Alignvest Acquisition will offset losses from the drop in Alignvest Acquisition's long position.| Guardian Capital vs. Uniteds Limited | Guardian Capital vs. Laurentian Bank | Guardian Capital vs. Cymbria | Guardian Capital vs. Clairvest Group |
| Alignvest Acquisition vs. Canaccord Genuity Group | Alignvest Acquisition vs. Clairvest Group | Alignvest Acquisition vs. Propel Holdings | Alignvest Acquisition vs. AGF Management Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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