Correlation Between Guidestone Fds and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Guidestone Fds and Emerging Markets 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 Emerging Markets 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 Emerging Markets Equity, you can compare the effects of market volatilities on Guidestone Fds and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidestone Fds and Emerging Markets.
Diversification Opportunities for Guidestone Fds and Emerging Markets
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Guidestone and Emerging is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Guidestone Fds Growth and Emerging Markets Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Equity 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Equity has no effect on the direction of Guidestone Fds i.e., Guidestone Fds and Emerging Markets go up and down completely randomly.
Pair Corralation between Guidestone Fds and Emerging Markets
Assuming the 90 days horizon Guidestone Fds Growth is expected to generate 1.24 times more return on investment than Emerging Markets. However, Guidestone Fds is 1.24 times more volatile than Emerging Markets Equity. It trades about 0.4 of its potential returns per unit of risk. Emerging Markets Equity is currently generating about 0.37 per unit of risk. If you would invest 2,285 in Guidestone Fds Growth on April 22, 2025 and sell it today you would earn a total of 584.00 from holding Guidestone Fds Growth or generate 25.56% 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. Emerging Markets Equity
Performance |
| Timeline |
| Guidestone Fds Growth |
| Emerging Markets Equity |
Guidestone Fds and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidestone Fds and Emerging Markets
The main advantage of trading using opposite Guidestone Fds and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidestone Fds position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Guidestone Fds vs. Growth Allocation Fund | Guidestone Fds vs. Defensive Market Strategies | Guidestone Fds vs. Defensive Market Strategies | Guidestone Fds vs. Value Equity Institutional |
| Emerging Markets vs. Bts Tactical Fixed | Emerging Markets vs. Dodge Global Bond | Emerging Markets vs. Gmo High Yield | Emerging Markets vs. Morningstar Defensive Bond |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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