Correlation Between Asg Global and Guidemark(r) Small/mid

Can any of the company-specific risk be diversified away by investing in both Asg Global and Guidemark(r) Small/mid 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 Asg Global and Guidemark(r) Small/mid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asg Global Alternatives and Guidemark Smallmid Cap, you can compare the effects of market volatilities on Asg Global and Guidemark(r) Small/mid 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 Asg Global with a short position of Guidemark(r) Small/mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Global and Guidemark(r) Small/mid.

Diversification Opportunities for Asg Global and Guidemark(r) Small/mid

0.29

Correlation Coefficient

Asg Global  Guidemark(r) Small/mid

Modest diversification

The 3 months correlation between Asg and Guidemark(r) is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Asg Global Alternatives and Guidemark Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidemark Smallmid Cap and Asg Global 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 Asg Global Alternatives are associated (or correlated) with Guidemark(r) Small/mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidemark Smallmid Cap has no effect on the direction of Asg Global i.e., Asg Global and Guidemark(r) Small/mid go up and down completely randomly.

Pair Corralation between Asg Global and Guidemark(r) Small/mid

Assuming the 90 days horizon Asg Global Alternatives is expected to generate 0.26 times more return on investment than Guidemark(r) Small/mid. However, Asg Global Alternatives is 3.88 times less risky than Guidemark(r) Small/mid. It trades about 0.03 of its potential returns per unit of risk. Guidemark Smallmid Cap is currently generating about -0.15 per unit of risk. If you would invest  1,048  in Asg Global Alternatives on December 20, 2024 and sell it today you would earn a total of  7.00  from holding Asg Global Alternatives or generate 0.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Asg Global Alternatives  vs.  Guidemark Smallmid Cap

Asg Global Alternatives

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Asg Global Alternatives are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Asg Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Guidemark Smallmid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guidemark Smallmid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Asg Global and Guidemark(r) Small/mid

The main advantage of trading using opposite Asg Global and Guidemark(r) Small/mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Global position performs unexpectedly, Guidemark(r) Small/mid 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(r) Small/mid will offset losses from the drop in Guidemark(r) Small/mid's long position.

The idea behind Asg Global Alternatives and Guidemark Smallmid 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..