Correlation Between Eic Value and Guidestone Funds
Can any of the company-specific risk be diversified away by investing in both Eic Value 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 Eic Value and Guidestone Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Guidestone Funds International, you can compare the effects of market volatilities on Eic Value 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 Eic Value with a short position of Guidestone Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Guidestone Funds.
Diversification Opportunities for Eic Value and Guidestone Funds
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eic and GuideStone is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value 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 Eic Value 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 Eic Value 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 Eic Value i.e., Eic Value and Guidestone Funds go up and down completely randomly.
Pair Corralation between Eic Value and Guidestone Funds
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.81 times more return on investment than Guidestone Funds. However, Eic Value Fund is 1.24 times less risky than Guidestone Funds. It trades about 0.12 of its potential returns per unit of risk. Guidestone Funds International is currently generating about 0.06 per unit of risk. If you would invest 1,585 in Eic Value Fund on September 4, 2024 and sell it today you would earn a total of 323.00 from holding Eic Value Fund or generate 20.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Guidestone Funds International
Performance |
| Timeline |
| Eic Value Fund |
| Guidestone Funds Int |
Eic Value and Guidestone Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Guidestone Funds
The main advantage of trading using opposite Eic Value and Guidestone Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value 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.| Eic Value vs. Qs Large Cap | Eic Value vs. Balanced Fund Investor | Eic Value vs. Abr 7525 Volatility | Eic Value vs. Bbh Intermediate Municipal |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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