Correlation Between Guidestone Fds and Blackrock Large

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

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

Diversification Opportunities for Guidestone Fds and Blackrock Large

-0.1

Correlation Coefficient

Guidestone Fds  Blackrock Large

Good diversification

The 3 months correlation between Guidestone and Blackrock is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guidestone Fds Growth and Blackrock Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Large Cap and Guidestone Fds 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 Guidestone Fds Growth are associated (or correlated) with Blackrock Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Large Cap has no effect on the direction of Guidestone Fds i.e., Guidestone Fds and Blackrock Large go up and down completely randomly.

Pair Corralation between Guidestone Fds and Blackrock Large

Assuming the 90 days horizon Guidestone Fds Growth is expected to under-perform the Blackrock Large. In addition to that, Guidestone Fds is 1.42 times more volatile than Blackrock Large Cap. It trades about -0.04 of its total potential returns per unit of risk. Blackrock Large Cap is currently generating about 0.1 per unit of volatility. If you would invest  844.00  in Blackrock Large Cap on October 24, 2024 and sell it today you would earn a total of  57.00  from holding Blackrock Large Cap or generate 6.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Guidestone Fds Growth  vs.  Blackrock Large Cap

Guidestone Fds Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

Blackrock Large Cap

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Large Cap are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Blackrock Large may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Guidestone Fds and Blackrock Large

The main advantage of trading using opposite Guidestone Fds and Blackrock Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidestone Fds position performs unexpectedly, Blackrock 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 Blackrock Large will offset losses from the drop in Blackrock Large's long position.

The idea behind Guidestone Fds Growth and Blackrock 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.