Correlation Between Americafirst Large and Guidepath Multi
Can any of the company-specific risk be diversified away by investing in both Americafirst Large and Guidepath Multi 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 Americafirst Large and Guidepath Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Large Cap and Guidepath Multi Asset Income, you can compare the effects of market volatilities on Americafirst Large and Guidepath Multi 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 Americafirst Large with a short position of Guidepath Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Large and Guidepath Multi.
Diversification Opportunities for Americafirst Large and Guidepath Multi
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Americafirst and Guidepath is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Large Cap and Guidepath Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Multi Asset and Americafirst Large 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 Americafirst Large Cap are associated (or correlated) with Guidepath Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Multi Asset has no effect on the direction of Americafirst Large i.e., Americafirst Large and Guidepath Multi go up and down completely randomly.
Pair Corralation between Americafirst Large and Guidepath Multi
Assuming the 90 days horizon Americafirst Large Cap is expected to generate 1.88 times more return on investment than Guidepath Multi. However, Americafirst Large is 1.88 times more volatile than Guidepath Multi Asset Income. It trades about 0.34 of its potential returns per unit of risk. Guidepath Multi Asset Income is currently generating about 0.28 per unit of risk. If you would invest 1,198 in Americafirst Large Cap on April 22, 2025 and sell it today you would earn a total of 198.00 from holding Americafirst Large Cap or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americafirst Large Cap vs. Guidepath Multi Asset Income
Performance |
| Timeline |
| Americafirst Large Cap |
| Guidepath Multi Asset |
Americafirst Large and Guidepath Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Large and Guidepath Multi
The main advantage of trading using opposite Americafirst Large and Guidepath Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Large position performs unexpectedly, Guidepath Multi 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 Multi will offset losses from the drop in Guidepath Multi's long position.| Americafirst Large vs. General Money Market | Americafirst Large vs. Franklin Government Money | Americafirst Large vs. Voya Government Money | Americafirst Large vs. Aig Government Money |
| Guidepath Multi vs. Guidepath Absolute Return | Guidepath Multi vs. Guidepath Conservative Income | Guidepath Multi vs. Guidepath Flexible Income | Guidepath Multi vs. Guidepath Growth And |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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