Correlation Between Sa Real and Guidemark Large
Can any of the company-specific risk be diversified away by investing in both Sa Real 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 Sa Real and Guidemark Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Real Estate and Guidemark Large Cap, you can compare the effects of market volatilities on Sa Real 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 Sa Real with a short position of Guidemark Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Real and Guidemark Large.
Diversification Opportunities for Sa Real and Guidemark Large
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SAREX and Guidemark is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sa Real Estate 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 Sa Real 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 Sa Real Estate 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 Sa Real i.e., Sa Real and Guidemark Large go up and down completely randomly.
Pair Corralation between Sa Real and Guidemark Large
Assuming the 90 days horizon Sa Real is expected to generate 4.06 times less return on investment than Guidemark Large. In addition to that, Sa Real is 1.12 times more volatile than Guidemark Large Cap. It trades about 0.06 of its total potential returns per unit of risk. Guidemark Large Cap is currently generating about 0.29 per unit of volatility. If you would invest 1,147 in Guidemark Large Cap on April 30, 2025 and sell it today you would earn a total of 155.00 from holding Guidemark Large Cap or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sa Real Estate vs. Guidemark Large Cap
Performance |
| Timeline |
| Sa Real Estate |
| Guidemark Large Cap |
Sa Real and Guidemark Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Real and Guidemark Large
The main advantage of trading using opposite Sa Real and Guidemark Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Real 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.| Sa Real vs. Aggressive Balanced Allocation | Sa Real vs. Americafirst Monthly Risk On | Sa Real vs. Siit High Yield | Sa Real vs. Artisan High Income |
| Guidemark Large vs. Mh Elite Fund | Guidemark Large vs. Tfa Alphagen Growth | Guidemark Large vs. Eagle Growth Income | Guidemark Large vs. Qs Large Cap |
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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