Correlation Between Guidestone Value and Rbc China
Can any of the company-specific risk be diversified away by investing in both Guidestone Value and Rbc China 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 Guidestone Value and Rbc China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidestone Value Equity and Rbc China Equity, you can compare the effects of market volatilities on Guidestone Value and Rbc China 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 Guidestone Value with a short position of Rbc China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidestone Value and Rbc China.
Diversification Opportunities for Guidestone Value and Rbc China
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guidestone and Rbc is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guidestone Value Equity and Rbc China Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc China Equity and Guidestone Value 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 Guidestone Value Equity are associated (or correlated) with Rbc China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc China Equity has no effect on the direction of Guidestone Value i.e., Guidestone Value and Rbc China go up and down completely randomly.
Pair Corralation between Guidestone Value and Rbc China
Assuming the 90 days horizon Guidestone Value is expected to generate 4.44 times less return on investment than Rbc China. But when comparing it to its historical volatility, Guidestone Value Equity is 2.28 times less risky than Rbc China. It trades about 0.11 of its potential returns per unit of risk. Rbc China Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,049 in Rbc China Equity on July 19, 2025 and sell it today you would earn a total of 215.00 from holding Rbc China Equity or generate 20.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidestone Value Equity vs. Rbc China Equity
Performance |
| Timeline |
| Guidestone Value Equity |
| Rbc China Equity |
Guidestone Value and Rbc China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidestone Value and Rbc China
The main advantage of trading using opposite Guidestone Value and Rbc China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidestone Value position performs unexpectedly, Rbc China 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 Rbc China will offset losses from the drop in Rbc China's long position.| Guidestone Value vs. Baird Quality Intermediate | Guidestone Value vs. Nebraska Municipal Fund | Guidestone Value vs. Bbh Intermediate Municipal | Guidestone Value vs. Old Westbury California |
| Rbc China vs. Rbc Small Cap | Rbc China vs. Rbc Enterprise Fund | Rbc China vs. Rbc Enterprise Fund | Rbc China vs. Rbc 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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