Correlation Between Guardian Capital and Altius Minerals

Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Altius Minerals 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 Altius Minerals 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 Altius Minerals, you can compare the effects of market volatilities on Guardian Capital and Altius Minerals 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 Altius Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Altius Minerals.

Diversification Opportunities for Guardian Capital and Altius Minerals

0.28

Correlation Coefficient

Guardian Capital  Altius Minerals

Modest diversification

The 3 months correlation between Guardian and Altius is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Altius Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altius Minerals 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 Altius Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altius Minerals has no effect on the direction of Guardian Capital i.e., Guardian Capital and Altius Minerals go up and down completely randomly.

Pair Corralation between Guardian Capital and Altius Minerals

Assuming the 90 days trading horizon Guardian Capital Group is expected to generate 1.31 times more return on investment than Altius Minerals. However, Guardian Capital is 1.31 times more volatile than Altius Minerals. It trades about 0.07 of its potential returns per unit of risk. Altius Minerals is currently generating about 0.04 per unit of risk. If you would invest  4,100  in Guardian Capital Group on April 24, 2025 and sell it today you would earn a total of  300.00  from holding Guardian Capital Group or generate 7.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Guardian Capital Group  vs.  Altius Minerals

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.

Altius Minerals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Altius Minerals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Altius Minerals is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Guardian Capital and Altius Minerals

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

The idea behind Guardian Capital Group and Altius Minerals 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.