Correlation Between Mh Elite and Guidemark Large
Can any of the company-specific risk be diversified away by investing in both Mh Elite and Guidemark Large 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 Mh Elite and Guidemark Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mh Elite Fund and Guidemark Large Cap, you can compare the effects of market volatilities on Mh Elite and Guidemark Large 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 Mh Elite with a short position of Guidemark Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mh Elite and Guidemark Large.
Diversification Opportunities for Mh Elite and Guidemark Large
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MHEFX and Guidemark is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mh Elite Fund and Guidemark Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidemark Large Cap and Mh Elite 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 Mh Elite Fund are associated (or correlated) with Guidemark Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidemark Large Cap has no effect on the direction of Mh Elite i.e., Mh Elite and Guidemark Large go up and down completely randomly.
Pair Corralation between Mh Elite and Guidemark Large
Assuming the 90 days horizon Mh Elite is expected to generate 1.02 times less return on investment than Guidemark Large. But when comparing it to its historical volatility, Mh Elite Fund is 1.27 times less risky than Guidemark Large. It trades about 0.24 of its potential returns per unit of risk. Guidemark Large Cap is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,205 in Guidemark Large Cap on June 1, 2025 and sell it today you would earn a total of 110.00 from holding Guidemark Large Cap or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mh Elite Fund vs. Guidemark Large Cap
Performance |
| Timeline |
| Mh Elite Fund |
| Guidemark Large Cap |
Mh Elite and Guidemark Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mh Elite and Guidemark Large
The main advantage of trading using opposite Mh Elite and Guidemark Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mh Elite position performs unexpectedly, Guidemark Large 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 Guidemark Large will offset losses from the drop in Guidemark Large's long position.| Mh Elite vs. Mh Elite Income | Mh Elite vs. Mh Elite Small | Mh Elite vs. Mh Elite Select | Mh Elite vs. Target Retirement 2040 |
| Guidemark Large vs. Guidemark E Fixed | Guidemark Large vs. Gmo Global Equity | Guidemark Large vs. Small Cap Equity | Guidemark Large vs. Ab Select Equity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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