Correlation Between High Yield and Guidemark Large
Can any of the company-specific risk be diversified away by investing in both High Yield 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 High Yield and Guidemark Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Fund and Guidemark Large Cap, you can compare the effects of market volatilities on High Yield 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 High Yield with a short position of Guidemark Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Guidemark Large.
Diversification Opportunities for High Yield and Guidemark Large
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HIGH and Guidemark is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding High Yield 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 High Yield 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 High Yield 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 High Yield i.e., High Yield and Guidemark Large go up and down completely randomly.
Pair Corralation between High Yield and Guidemark Large
Assuming the 90 days horizon High Yield is expected to generate 3.47 times less return on investment than Guidemark Large. But when comparing it to its historical volatility, High Yield Fund is 4.88 times less risky than Guidemark Large. It trades about 0.39 of its potential returns per unit of risk. Guidemark Large Cap is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,057 in Guidemark Large Cap on April 30, 2025 and sell it today you would earn a total of 441.00 from holding Guidemark Large Cap or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Yield Fund vs. Guidemark Large Cap
Performance |
| Timeline |
| High Yield Fund |
| Guidemark Large Cap |
High Yield and Guidemark Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Guidemark Large
The main advantage of trading using opposite High Yield and Guidemark Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield 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.| High Yield vs. Fidelity Advisor Energy | High Yield vs. Franklin Natural Resources | High Yield vs. Global Resources Fund | High Yield vs. Invesco Energy Fund |
| Guidemark Large vs. Pace International Emerging | Guidemark Large vs. Nasdaq 100 2x Strategy | Guidemark Large vs. Fidelity Series Emerging | Guidemark Large vs. Transamerica Emerging Markets |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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