Correlation Between Guardian Capital and RF Capital
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and RF Capital 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 RF Capital 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 RF Capital Group, you can compare the effects of market volatilities on Guardian Capital and RF Capital 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 RF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and RF Capital.
Diversification Opportunities for Guardian Capital and RF Capital
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guardian and GMPXF is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and RF Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Capital Group 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 RF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Capital Group has no effect on the direction of Guardian Capital i.e., Guardian Capital and RF Capital go up and down completely randomly.
Pair Corralation between Guardian Capital and RF Capital
Assuming the 90 days horizon Guardian Capital Group is expected to generate 0.69 times more return on investment than RF Capital. However, Guardian Capital Group is 1.45 times less risky than RF Capital. It trades about 0.09 of its potential returns per unit of risk. RF Capital Group is currently generating about -0.02 per unit of risk. If you would invest 3,157 in Guardian Capital Group on August 24, 2025 and sell it today you would earn a total of 28.00 from holding Guardian Capital Group or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.92% |
| Values | Daily Returns |
Guardian Capital Group vs. RF Capital Group
Performance |
| Timeline |
| Guardian Capital |
| RF Capital Group |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Guardian Capital and RF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and RF Capital
The main advantage of trading using opposite Guardian Capital and RF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, RF Capital 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 RF Capital will offset losses from the drop in RF Capital's long position.| Guardian Capital vs. Clairvest Group | Guardian Capital vs. AGF Management Limited | Guardian Capital vs. Canadian General Investments | Guardian Capital vs. Senvest Capital |
| RF Capital vs. Urbana | RF Capital vs. Pacific Current Group | RF Capital vs. Urbana | RF Capital vs. City of London |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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