Correlation Between Alexander Baldwin and Guild Holdings

Can any of the company-specific risk be diversified away by investing in both Alexander Baldwin and Guild Holdings 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 Alexander Baldwin and Guild Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alexander Baldwin Holdings and Guild Holdings Co, you can compare the effects of market volatilities on Alexander Baldwin and Guild Holdings 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 Alexander Baldwin with a short position of Guild Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexander Baldwin and Guild Holdings.

Diversification Opportunities for Alexander Baldwin and Guild Holdings

0.67

Correlation Coefficient

Alexander Baldwin  Guild Holdings

Poor diversification

The 3 months correlation between Alexander and Guild is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Alexander Baldwin Holdings and Guild Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Holdings and Alexander Baldwin 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 Alexander Baldwin Holdings are associated (or correlated) with Guild Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Holdings has no effect on the direction of Alexander Baldwin i.e., Alexander Baldwin and Guild Holdings go up and down completely randomly.

Pair Corralation between Alexander Baldwin and Guild Holdings

Given the investment horizon of 90 days Alexander Baldwin is expected to generate 9.18 times less return on investment than Guild Holdings. But when comparing it to its historical volatility, Alexander Baldwin Holdings is 4.16 times less risky than Guild Holdings. It trades about 0.08 of its potential returns per unit of risk. Guild Holdings Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,287  in Guild Holdings Co on May 5, 2025 and sell it today you would earn a total of  699.00  from holding Guild Holdings Co or generate 54.31% return on investment over 90 days.

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

Alexander Baldwin Holdings  vs.  Guild Holdings Co

Alexander Baldwin

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alexander Baldwin Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Alexander Baldwin is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Guild Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guild Holdings Co are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, Guild Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alexander Baldwin and Guild Holdings

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

The idea behind Alexander Baldwin Holdings and Guild Holdings Co 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.