Correlation Between Citizensselect Funds and Guidemark Large

Can any of the company-specific risk be diversified away by investing in both Citizensselect Funds 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 Citizensselect Funds and Guidemark Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citizensselect Funds and Guidemark Large Cap, you can compare the effects of market volatilities on Citizensselect Funds 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 Citizensselect Funds with a short position of Guidemark Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizensselect Funds and Guidemark Large.

Diversification Opportunities for Citizensselect Funds and Guidemark Large

-0.8

Correlation Coefficient

Citizensselect Funds  Guidemark Large

Pay attention - limited upside

The 3 months correlation between Citizensselect and Guidemark is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citizensselect Funds 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 Citizensselect Funds 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 Citizensselect Funds 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 Citizensselect Funds i.e., Citizensselect Funds and Guidemark Large go up and down completely randomly.

Pair Corralation between Citizensselect Funds and Guidemark Large

If you would invest  1,158  in Guidemark Large Cap on September 27, 2024 and sell it today you would earn a total of  10.00  from holding Guidemark Large Cap or generate 0.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Citizensselect Funds   vs.  Guidemark Large Cap

Citizensselect Funds

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citizensselect Funds are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Citizensselect Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Guidemark Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guidemark Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Guidemark Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citizensselect Funds and Guidemark Large

The main advantage of trading using opposite Citizensselect Funds and Guidemark Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizensselect Funds 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.

The idea behind Citizensselect Funds and Guidemark Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.