Correlation Between Guidemark Large and Oil Equipment
Can any of the company-specific risk be diversified away by investing in both Guidemark Large and Oil Equipment 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 Oil Equipment 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 Oil Equipment Services, you can compare the effects of market volatilities on Guidemark Large and Oil Equipment 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 Oil Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Large and Oil Equipment.
Diversification Opportunities for Guidemark Large and Oil Equipment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guidemark and Oil is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Oil Equipment Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Equipment Services 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 Oil Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Equipment Services has no effect on the direction of Guidemark Large i.e., Guidemark Large and Oil Equipment go up and down completely randomly.
Pair Corralation between Guidemark Large and Oil Equipment
Assuming the 90 days horizon Guidemark Large is expected to generate 2.48 times less return on investment than Oil Equipment. But when comparing it to its historical volatility, Guidemark Large Cap is 4.31 times less risky than Oil Equipment. It trades about 0.22 of its potential returns per unit of risk. Oil Equipment Services is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,470 in Oil Equipment Services on May 30, 2025 and sell it today you would earn a total of 1,327 from holding Oil Equipment Services or generate 24.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Guidemark Large Cap vs. Oil Equipment Services
Performance |
| Timeline |
| Guidemark Large Cap |
| Oil Equipment Services |
Guidemark Large and Oil Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Large and Oil Equipment
The main advantage of trading using opposite Guidemark Large and Oil Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Large position performs unexpectedly, Oil Equipment 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 Oil Equipment will offset losses from the drop in Oil Equipment's long position.| Guidemark Large vs. Guidemark E Fixed | Guidemark Large vs. Guidemark Large Cap | Guidemark Large vs. Guidemark Smallmid Cap | Guidemark Large vs. Guidemark World Ex Us |
| Oil Equipment vs. Old Westbury Large | Oil Equipment vs. Tactical Multi Purpose Fund | Oil Equipment vs. Tfa Alphagen Growth | Oil Equipment vs. T Rowe Price |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |