Correlation Between Cref Money and Guidepath Managed
Can any of the company-specific risk be diversified away by investing in both Cref Money and Guidepath Managed 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 Cref Money and Guidepath Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Guidepath Managed Futures, you can compare the effects of market volatilities on Cref Money and Guidepath Managed 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 Cref Money with a short position of Guidepath Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Guidepath Managed.
Diversification Opportunities for Cref Money and Guidepath Managed
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cref and Guidepath is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures and Cref Money 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 Cref Money Market are associated (or correlated) with Guidepath Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Cref Money i.e., Cref Money and Guidepath Managed go up and down completely randomly.
Pair Corralation between Cref Money and Guidepath Managed
Assuming the 90 days trading horizon Cref Money is expected to generate 1.81 times less return on investment than Guidepath Managed. But when comparing it to its historical volatility, Cref Money Market is 46.63 times less risky than Guidepath Managed. It trades about 0.98 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 665.00 in Guidepath Managed Futures on August 22, 2025 and sell it today you would earn a total of 11.00 from holding Guidepath Managed Futures or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Guidepath Managed Futures
Performance |
| Timeline |
| Cref Money Market |
| Guidepath Managed Futures |
Cref Money and Guidepath Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Guidepath Managed
The main advantage of trading using opposite Cref Money and Guidepath Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Guidepath Managed 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 Guidepath Managed will offset losses from the drop in Guidepath Managed's long position.| Cref Money vs. Nuveen California High | Cref Money vs. Msift High Yield | Cref Money vs. John Hancock High | Cref Money vs. Alpine High Yield |
| Guidepath Managed vs. Ultrasmall Cap Profund Ultrasmall Cap | Guidepath Managed vs. Hennessy Nerstone Mid | Guidepath Managed vs. Mid Cap Growth Profund | Guidepath Managed vs. Applied Finance Explorer |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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