Correlation Between Emerging Markets and Guidestone Growth
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Guidestone Growth 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 Emerging Markets and Guidestone Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Markets Equity and Guidestone Growth Equity, you can compare the effects of market volatilities on Emerging Markets and Guidestone Growth 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 Emerging Markets with a short position of Guidestone Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Guidestone Growth.
Diversification Opportunities for Emerging Markets and Guidestone Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Emerging and Guidestone is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Equity and Guidestone Growth Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidestone Growth Equity and Emerging Markets 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 Emerging Markets Equity are associated (or correlated) with Guidestone Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidestone Growth Equity has no effect on the direction of Emerging Markets i.e., Emerging Markets and Guidestone Growth go up and down completely randomly.
Pair Corralation between Emerging Markets and Guidestone Growth
Assuming the 90 days horizon Emerging Markets is expected to generate 1.12 times less return on investment than Guidestone Growth. In addition to that, Emerging Markets is 1.02 times more volatile than Guidestone Growth Equity. It trades about 0.21 of its total potential returns per unit of risk. Guidestone Growth Equity is currently generating about 0.24 per unit of volatility. If you would invest 1,627 in Guidestone Growth Equity on May 29, 2025 and sell it today you would earn a total of 189.00 from holding Guidestone Growth Equity or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Emerging Markets Equity vs. Guidestone Growth Equity
Performance |
| Timeline |
| Emerging Markets Equity |
| Guidestone Growth Equity |
Emerging Markets and Guidestone Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Guidestone Growth
The main advantage of trading using opposite Emerging Markets and Guidestone Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Guidestone Growth 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 Guidestone Growth will offset losses from the drop in Guidestone Growth's long position.| Emerging Markets vs. Gmo Global Equity | Emerging Markets vs. Legg Mason Global | Emerging Markets vs. Calamos Global Growth | Emerging Markets vs. Calvert Global Energy |
| Guidestone Growth vs. Astor Star Fund | Guidestone Growth vs. Tactical Multi Purpose Fund | Guidestone Growth vs. Rational Strategic Allocation | Guidestone Growth vs. Guidemark Large Cap |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |