Correlation Between Ameriguard Security and National Graphite

Can any of the company-specific risk be diversified away by investing in both Ameriguard Security and National Graphite 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 Ameriguard Security and National Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ameriguard Security Services and National Graphite Corp, you can compare the effects of market volatilities on Ameriguard Security and National Graphite 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 Ameriguard Security with a short position of National Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriguard Security and National Graphite.

Diversification Opportunities for Ameriguard Security and National Graphite

0.01

Correlation Coefficient

Ameriguard Security  National Graphite

Significant diversification

The 3 months correlation between Ameriguard and National is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ameriguard Security Services and National Graphite Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Graphite Corp and Ameriguard Security 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 Ameriguard Security Services are associated (or correlated) with National Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Graphite Corp has no effect on the direction of Ameriguard Security i.e., Ameriguard Security and National Graphite go up and down completely randomly.

Pair Corralation between Ameriguard Security and National Graphite

Given the investment horizon of 90 days Ameriguard Security Services is expected to generate 6.04 times more return on investment than National Graphite. However, Ameriguard Security is 6.04 times more volatile than National Graphite Corp. It trades about 0.21 of its potential returns per unit of risk. National Graphite Corp is currently generating about 0.11 per unit of risk. If you would invest  1.44  in Ameriguard Security Services on October 7, 2025 and sell it today you would earn a total of  0.80  from holding Ameriguard Security Services or generate 55.56% return on investment over 90 days.

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

Ameriguard Security Services  vs.  National Graphite Corp

Ameriguard Security

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Ameriguard Security Services are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Ameriguard Security unveiled solid returns over the last few months and may actually be approaching a breakup point.

National Graphite Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in National Graphite Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, National Graphite exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ameriguard Security and National Graphite

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

The idea behind Ameriguard Security Services and National Graphite Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.