Correlation Between Pace International and Guidemark(r) Large
Can any of the company-specific risk be diversified away by investing in both Pace International and Guidemark(r) 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 Pace International and Guidemark(r) Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace International Emerging and Guidemark Large Cap, you can compare the effects of market volatilities on Pace International and Guidemark(r) 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 Pace International with a short position of Guidemark(r) Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Guidemark(r) Large.
Diversification Opportunities for Pace International and Guidemark(r) Large
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pace and Guidemark(r) is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging 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 Pace International 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 Pace International Emerging are associated (or correlated) with Guidemark(r) 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 Pace International i.e., Pace International and Guidemark(r) Large go up and down completely randomly.
Pair Corralation between Pace International and Guidemark(r) Large
Assuming the 90 days horizon Pace International Emerging is expected to generate 1.01 times more return on investment than Guidemark(r) Large. However, Pace International is 1.01 times more volatile than Guidemark Large Cap. It trades about 0.26 of its potential returns per unit of risk. Guidemark Large Cap is currently generating about 0.22 per unit of risk. If you would invest 1,432 in Pace International Emerging on May 28, 2025 and sell it today you would earn a total of 164.00 from holding Pace International Emerging or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace International Emerging vs. Guidemark Large Cap
Performance |
| Timeline |
| Pace International |
| Guidemark Large Cap |
Pace International and Guidemark(r) Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace International and Guidemark(r) Large
The main advantage of trading using opposite Pace International and Guidemark(r) Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace International position performs unexpectedly, Guidemark(r) 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(r) Large will offset losses from the drop in Guidemark(r) Large's long position.| Pace International vs. Pace Smallmedium Value | Pace International vs. Pace International Equity | Pace International vs. Ubs Allocation Fund | Pace International vs. Ubs Allocation Fund |
| Guidemark(r) Large vs. Intermediate Government Bond | Guidemark(r) Large vs. Federated Government Income | Guidemark(r) Large vs. Goldman Sachs Government | Guidemark(r) Large vs. Wells Fargo Government |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |