Correlation Between Guidemark Large and Value Fund
Can any of the company-specific risk be diversified away by investing in both Guidemark Large and Value Fund 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 Guidemark Large and Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Large Cap and Value Fund I, you can compare the effects of market volatilities on Guidemark Large and Value Fund 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 Guidemark Large with a short position of Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Large and Value Fund.
Diversification Opportunities for Guidemark Large and Value Fund
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guidemark and Value is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Value Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund I and Guidemark Large 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 Guidemark Large Cap are associated (or correlated) with Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund I has no effect on the direction of Guidemark Large i.e., Guidemark Large and Value Fund go up and down completely randomly.
Pair Corralation between Guidemark Large and Value Fund
Assuming the 90 days horizon Guidemark Large Cap is expected to generate 1.14 times more return on investment than Value Fund. However, Guidemark Large is 1.14 times more volatile than Value Fund I. It trades about 0.2 of its potential returns per unit of risk. Value Fund I is currently generating about 0.21 per unit of risk. If you would invest 1,205 in Guidemark Large Cap on May 31, 2025 and sell it today you would earn a total of 114.00 from holding Guidemark Large Cap or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Guidemark Large Cap vs. Value Fund I
Performance |
| Timeline |
| Guidemark Large Cap |
| Value Fund I |
Guidemark Large and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Large and Value Fund
The main advantage of trading using opposite Guidemark Large and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Large position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.| Guidemark Large vs. Ab Bond Inflation | Guidemark Large vs. Investec Emerging Markets | Guidemark Large vs. Ep Emerging Markets | Guidemark Large vs. Ashmore Emerging Markets |
| Value Fund vs. Mid Cap Value | Value Fund vs. Equity Growth Fund | Value Fund vs. Income Growth Fund | Value Fund vs. Diversified Bond Fund |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |