Correlation Between Auer Growth and Guidestone Funds
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Guidestone Funds 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 Auer Growth and Guidestone Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Guidestone Funds International, you can compare the effects of market volatilities on Auer Growth and Guidestone Funds 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 Auer Growth with a short position of Guidestone Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Guidestone Funds.
Diversification Opportunities for Auer Growth and Guidestone Funds
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auer and GuideStone is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Guidestone Funds International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidestone Funds Int and Auer Growth 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 Auer Growth Fund are associated (or correlated) with Guidestone Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidestone Funds Int has no effect on the direction of Auer Growth i.e., Auer Growth and Guidestone Funds go up and down completely randomly.
Pair Corralation between Auer Growth and Guidestone Funds
Assuming the 90 days horizon Auer Growth Fund is expected to generate 1.1 times more return on investment than Guidestone Funds. However, Auer Growth is 1.1 times more volatile than Guidestone Funds International. It trades about 0.25 of its potential returns per unit of risk. Guidestone Funds International is currently generating about 0.02 per unit of risk. If you would invest 1,680 in Auer Growth Fund on September 4, 2024 and sell it today you would earn a total of 86.00 from holding Auer Growth Fund or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Guidestone Funds International
Performance |
| Timeline |
| Auer Growth Fund |
| Guidestone Funds Int |
Auer Growth and Guidestone Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Guidestone Funds
The main advantage of trading using opposite Auer Growth and Guidestone Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Guidestone Funds 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 Guidestone Funds will offset losses from the drop in Guidestone Funds' long position.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Guidestone Funds vs. Commonwealth Global Fund | Guidestone Funds vs. Auer Growth Fund | Guidestone Funds vs. Ab Small Cap | Guidestone Funds vs. Eic Value Fund |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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