Correlation Between Kingsway Financial and Guardian Pharmacy

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

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

Diversification Opportunities for Kingsway Financial and Guardian Pharmacy

-0.89

Correlation Coefficient

Kingsway Financial  Guardian Pharmacy

Pay attention - limited upside

The 3 months correlation between Kingsway and Guardian is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kingsway Financial Services and Guardian Pharmacy Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Pharmacy and Kingsway Financial 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 Kingsway Financial Services are associated (or correlated) with Guardian Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Pharmacy has no effect on the direction of Kingsway Financial i.e., Kingsway Financial and Guardian Pharmacy go up and down completely randomly.

Pair Corralation between Kingsway Financial and Guardian Pharmacy

Considering the 90-day investment horizon Kingsway Financial Services is expected to generate 1.12 times more return on investment than Guardian Pharmacy. However, Kingsway Financial is 1.12 times more volatile than Guardian Pharmacy Services,. It trades about 0.21 of its potential returns per unit of risk. Guardian Pharmacy Services, is currently generating about -0.11 per unit of risk. If you would invest  893.00  in Kingsway Financial Services on May 4, 2025 and sell it today you would earn a total of  443.00  from holding Kingsway Financial Services or generate 49.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Kingsway Financial Services  vs.  Guardian Pharmacy Services,

Kingsway Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kingsway Financial Services are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Kingsway Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Guardian Pharmacy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guardian Pharmacy Services, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Kingsway Financial and Guardian Pharmacy

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

The idea behind Kingsway Financial Services and Guardian Pharmacy Services, 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.