Correlation Between Guidemark Large and Federated
Can any of the company-specific risk be diversified away by investing in both Guidemark Large and Federated 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 Federated 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 Federated U S, you can compare the effects of market volatilities on Guidemark Large and Federated 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 Federated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Large and Federated.
Diversification Opportunities for Guidemark Large and Federated
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guidemark and Federated is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Federated U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated U S 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 Federated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated U S has no effect on the direction of Guidemark Large i.e., Guidemark Large and Federated go up and down completely randomly.
Pair Corralation between Guidemark Large and Federated
Assuming the 90 days horizon Guidemark Large Cap is expected to generate 4.14 times more return on investment than Federated. However, Guidemark Large is 4.14 times more volatile than Federated U S. It trades about 0.34 of its potential returns per unit of risk. Federated U S is currently generating about 0.08 per unit of risk. If you would invest 1,222 in Guidemark Large Cap on April 5, 2025 and sell it today you would earn a total of 72.00 from holding Guidemark Large Cap or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Large Cap vs. Federated U S
Performance |
| Timeline |
| Guidemark Large Cap |
| Federated U S |
Guidemark Large and Federated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Large and Federated
The main advantage of trading using opposite Guidemark Large and Federated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Large position performs unexpectedly, Federated 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 Federated will offset losses from the drop in Federated's long position.| Guidemark Large vs. Tiaa Cref Lifestyle Servative | Guidemark Large vs. Fulcrum Diversified Absolute | Guidemark Large vs. Lord Abbett Diversified | Guidemark Large vs. Global Diversified Income |
| Federated vs. Growth Allocation Fund | Federated vs. Nuveen Winslow Large Cap | Federated vs. Profunds Large Cap Growth | Federated 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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