Correlation Between Guardian Investment and PICTON Credit
Can any of the company-specific risk be diversified away by investing in both Guardian Investment and PICTON Credit 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 Investment and PICTON Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian Investment Grade and PICTON Credit Opportunities, you can compare the effects of market volatilities on Guardian Investment and PICTON Credit 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 Investment with a short position of PICTON Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Investment and PICTON Credit.
Diversification Opportunities for Guardian Investment and PICTON Credit
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guardian and PICTON is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Investment Grade and PICTON Credit Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICTON Credit Opport and Guardian Investment 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 Investment Grade are associated (or correlated) with PICTON Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICTON Credit Opport has no effect on the direction of Guardian Investment i.e., Guardian Investment and PICTON Credit go up and down completely randomly.
Pair Corralation between Guardian Investment and PICTON Credit
Assuming the 90 days trading horizon Guardian Investment is expected to generate 51.7 times less return on investment than PICTON Credit. But when comparing it to its historical volatility, Guardian Investment Grade is 1.74 times less risky than PICTON Credit. It trades about 0.0 of its potential returns per unit of risk. PICTON Credit Opportunities is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 934.00 in PICTON Credit Opportunities on April 20, 2025 and sell it today you would earn a total of 31.00 from holding PICTON Credit Opportunities or generate 3.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Guardian Investment Grade vs. PICTON Credit Opportunities
Performance |
Timeline |
Guardian Investment Grade |
PICTON Credit Opport |
Guardian Investment and PICTON Credit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guardian Investment and PICTON Credit
The main advantage of trading using opposite Guardian Investment and PICTON Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Investment position performs unexpectedly, PICTON Credit 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 PICTON Credit will offset losses from the drop in PICTON Credit's long position.Guardian Investment vs. Fidelity Tactical High | Guardian Investment vs. RBC Canadian Equity | Guardian Investment vs. Symphony Floating Rate | Guardian Investment vs. Edgepoint Cdn Growth |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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