Correlation Between Guidestone Fds and Balanced Allocation
Can any of the company-specific risk be diversified away by investing in both Guidestone Fds and Balanced Allocation 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 Guidestone Fds and Balanced Allocation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidestone Fds Growth and Balanced Allocation Fund, you can compare the effects of market volatilities on Guidestone Fds and Balanced Allocation 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 Guidestone Fds with a short position of Balanced Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidestone Fds and Balanced Allocation.
Diversification Opportunities for Guidestone Fds and Balanced Allocation
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Guidestone and Balanced is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Guidestone Fds Growth and Balanced Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Allocation and Guidestone Fds 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 Guidestone Fds Growth are associated (or correlated) with Balanced Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Allocation has no effect on the direction of Guidestone Fds i.e., Guidestone Fds and Balanced Allocation go up and down completely randomly.
Pair Corralation between Guidestone Fds and Balanced Allocation
Assuming the 90 days horizon Guidestone Fds Growth is expected to generate 2.48 times more return on investment than Balanced Allocation. However, Guidestone Fds is 2.48 times more volatile than Balanced Allocation Fund. It trades about 0.33 of its potential returns per unit of risk. Balanced Allocation Fund is currently generating about 0.32 per unit of risk. If you would invest 2,427 in Guidestone Fds Growth on April 25, 2025 and sell it today you would earn a total of 447.00 from holding Guidestone Fds Growth or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidestone Fds Growth vs. Balanced Allocation Fund
Performance |
| Timeline |
| Guidestone Fds Growth |
| Balanced Allocation |
Guidestone Fds and Balanced Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidestone Fds and Balanced Allocation
The main advantage of trading using opposite Guidestone Fds and Balanced Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidestone Fds position performs unexpectedly, Balanced Allocation 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 Balanced Allocation will offset losses from the drop in Balanced Allocation's long position.| Guidestone Fds vs. Doubleline Emerging Markets | Guidestone Fds vs. Transamerica Emerging Markets | Guidestone Fds vs. Pace International Emerging | Guidestone Fds vs. Dodge Cox Emerging |
| Balanced Allocation vs. Pace Municipal Fixed | Balanced Allocation vs. Intermediate Term Bond Fund | Balanced Allocation vs. Ab Bond Inflation | Balanced Allocation vs. Old Westbury California |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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