Correlation Between Guidemark(r) Large and Upright Assets

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

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

Diversification Opportunities for Guidemark(r) Large and Upright Assets

0.93

Correlation Coefficient

Guidemark(r) Large  Upright Assets

Almost no diversification

The 3 months correlation between GUIDEMARK(R) and Upright is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Upright Assets Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upright Assets Allocation and Guidemark(r) 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 Guidemark Large Cap are associated (or correlated) with Upright Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upright Assets Allocation has no effect on the direction of Guidemark(r) Large i.e., Guidemark(r) Large and Upright Assets go up and down completely randomly.

Pair Corralation between Guidemark(r) Large and Upright Assets

Assuming the 90 days horizon Guidemark Large Cap is expected to generate 0.46 times more return on investment than Upright Assets. However, Guidemark Large Cap is 2.18 times less risky than Upright Assets. It trades about -0.12 of its potential returns per unit of risk. Upright Assets Allocation is currently generating about -0.07 per unit of risk. If you would invest  3,486  in Guidemark Large Cap on December 25, 2024 and sell it today you would lose (304.00) from holding Guidemark Large Cap or give up 8.72% of portfolio value over 90 days.

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

Guidemark Large Cap  vs.  Upright Assets Allocation

Guidemark Large Cap

Risk-Adjusted Performance

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 latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Upright Assets Allocation

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upright Assets Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Guidemark(r) Large and Upright Assets

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

The idea behind Guidemark Large Cap and Upright Assets Allocation 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .