Correlation Between Guidemark Smallmid and Sa Emerging
Can any of the company-specific risk be diversified away by investing in both Guidemark Smallmid and Sa Emerging 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 Sa Emerging 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 Sa Emerging Markets, you can compare the effects of market volatilities on Guidemark Smallmid and Sa Emerging 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 Sa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Smallmid and Sa Emerging.
Diversification Opportunities for Guidemark Smallmid and Sa Emerging
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guidemark and SAEMX is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap and Sa Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Emerging Markets 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 Sa Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Emerging Markets has no effect on the direction of Guidemark Smallmid i.e., Guidemark Smallmid and Sa Emerging go up and down completely randomly.
Pair Corralation between Guidemark Smallmid and Sa Emerging
Assuming the 90 days horizon Guidemark Smallmid Cap is expected to generate 1.56 times more return on investment than Sa Emerging. However, Guidemark Smallmid is 1.56 times more volatile than Sa Emerging Markets. It trades about 0.16 of its potential returns per unit of risk. Sa Emerging Markets is currently generating about 0.19 per unit of risk. If you would invest 1,901 in Guidemark Smallmid Cap on June 3, 2025 and sell it today you would earn a total of 191.00 from holding Guidemark Smallmid Cap or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Smallmid Cap vs. Sa Emerging Markets
Performance |
| Timeline |
| Guidemark Smallmid Cap |
| Sa Emerging Markets |
Guidemark Smallmid and Sa Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Smallmid and Sa Emerging
The main advantage of trading using opposite Guidemark Smallmid and Sa Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Smallmid position performs unexpectedly, Sa Emerging 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 Sa Emerging will offset losses from the drop in Sa Emerging's long position.| Guidemark Smallmid vs. Bbh Intermediate Municipal | Guidemark Smallmid vs. Guidemark E Fixed | Guidemark Smallmid vs. T Rowe Price | Guidemark Smallmid vs. Pioneer High Yield |
| Sa Emerging vs. Ab Bond Inflation | Sa Emerging vs. Rbc Bluebay Emerging | Sa Emerging vs. Western Assets Emerging | Sa Emerging vs. Transamerica Emerging Markets |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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