Correlation Between Guidemark Smallmid and Growth Allocation
Can any of the company-specific risk be diversified away by investing in both Guidemark Smallmid and Growth 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 Guidemark Smallmid and Growth Allocation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Smallmid Cap and Growth Allocation Fund, you can compare the effects of market volatilities on Guidemark Smallmid and Growth 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 Guidemark Smallmid with a short position of Growth Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Smallmid and Growth Allocation.
Diversification Opportunities for Guidemark Smallmid and Growth Allocation
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guidemark and GROWTH is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap and Growth Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Allocation and Guidemark Smallmid 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 Smallmid Cap are associated (or correlated) with Growth Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Allocation has no effect on the direction of Guidemark Smallmid i.e., Guidemark Smallmid and Growth Allocation go up and down completely randomly.
Pair Corralation between Guidemark Smallmid and Growth Allocation
Assuming the 90 days horizon Guidemark Smallmid Cap is expected to generate 2.19 times more return on investment than Growth Allocation. However, Guidemark Smallmid is 2.19 times more volatile than Growth Allocation Fund. It trades about 0.17 of its potential returns per unit of risk. Growth Allocation Fund is currently generating about 0.2 per unit of risk. If you would invest 1,876 in Guidemark Smallmid Cap on June 1, 2025 and sell it today you would earn a total of 216.00 from holding Guidemark Smallmid Cap or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Smallmid Cap vs. Growth Allocation Fund
Performance |
| Timeline |
| Guidemark Smallmid Cap |
| Growth Allocation |
Guidemark Smallmid and Growth Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Smallmid and Growth Allocation
The main advantage of trading using opposite Guidemark Smallmid and Growth Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Smallmid position performs unexpectedly, Growth 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 Growth Allocation will offset losses from the drop in Growth Allocation's long position.| Guidemark Smallmid vs. Chase Growth Fund | Guidemark Smallmid vs. Praxis Genesis Growth | Guidemark Smallmid vs. Growth Allocation Fund | Guidemark Smallmid vs. Morningstar Growth Etf |
| Growth Allocation vs. Defensive Market Strategies | Growth Allocation vs. Defensive Market Strategies | Growth Allocation vs. Value Equity Institutional | Growth Allocation vs. Value Equity Investor |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |