Correlation Between Guardian Capital and UPS CDR
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and UPS CDR 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 UPS CDR 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 UPS CDR, you can compare the effects of market volatilities on Guardian Capital and UPS CDR 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 UPS CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and UPS CDR.
Diversification Opportunities for Guardian Capital and UPS CDR
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guardian and UPS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and UPS CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPS 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 UPS CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPS CDR has no effect on the direction of Guardian Capital i.e., Guardian Capital and UPS CDR go up and down completely randomly.
Pair Corralation between Guardian Capital and UPS CDR
Assuming the 90 days trading horizon Guardian Capital Group is expected to generate 3.15 times more return on investment than UPS CDR. However, Guardian Capital is 3.15 times more volatile than UPS CDR. It trades about 0.14 of its potential returns per unit of risk. UPS CDR is currently generating about -0.1 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Capital Group vs. UPS CDR
Performance |
| Timeline |
| Guardian Capital |
| UPS CDR |
Guardian Capital and UPS CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and UPS CDR
The main advantage of trading using opposite Guardian Capital and UPS CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, UPS CDR 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 UPS CDR will offset losses from the drop in UPS CDR's long position.| Guardian Capital vs. Uniteds Limited | Guardian Capital vs. Laurentian Bank | Guardian Capital vs. Cymbria | Guardian Capital vs. Clairvest Group |
| UPS CDR vs. American CuMo Mining | UPS CDR vs. Perseus Mining | UPS CDR vs. Globex Mining Enterprises | UPS CDR vs. Queens Road Capital |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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