Correlation Between Altius Minerals and Guardian Capital

Can any of the company-specific risk be diversified away by investing in both Altius Minerals and Guardian 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 Altius Minerals and Guardian Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altius Minerals and Guardian Capital Group, you can compare the effects of market volatilities on Altius Minerals and Guardian 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 Altius Minerals with a short position of Guardian Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altius Minerals and Guardian Capital.

Diversification Opportunities for Altius Minerals and Guardian Capital

-0.05

Correlation Coefficient

Altius Minerals  Guardian Capital

Good diversification

The 3 months correlation between Altius and Guardian is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Altius Minerals and Guardian Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Capital and Altius Minerals 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 Altius Minerals are associated (or correlated) with Guardian Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Capital has no effect on the direction of Altius Minerals i.e., Altius Minerals and Guardian Capital go up and down completely randomly.

Pair Corralation between Altius Minerals and Guardian Capital

Assuming the 90 days trading horizon Altius Minerals is expected to under-perform the Guardian Capital. But the stock apears to be less risky and, when comparing its historical volatility, Altius Minerals is 1.7 times less risky than Guardian Capital. The stock trades about -0.01 of its potential returns per unit of risk. The Guardian Capital Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  4,206  in Guardian Capital Group on April 22, 2025 and sell it today you would earn a total of  194.00  from holding Guardian Capital Group or generate 4.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Altius Minerals  vs.  Guardian Capital Group

Altius Minerals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Altius Minerals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Altius Minerals may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Guardian Capital

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Capital Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Guardian Capital may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Altius Minerals and Guardian Capital

The main advantage of trading using opposite Altius Minerals and Guardian Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altius Minerals position performs unexpectedly, Guardian 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 Guardian Capital will offset losses from the drop in Guardian Capital's long position.

The idea behind Altius Minerals and Guardian Capital Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.