Correlation Between Strategic Alternatives and Guidestone Funds
Can any of the company-specific risk be diversified away by investing in both Strategic Alternatives 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 Strategic Alternatives and Guidestone Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Alternatives Fund and Guidestone Funds Impact, you can compare the effects of market volatilities on Strategic Alternatives 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 Strategic Alternatives with a short position of Guidestone Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Alternatives and Guidestone Funds.
Diversification Opportunities for Strategic Alternatives and Guidestone Funds
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Strategic and Guidestone is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Alternatives Fund and Guidestone Funds Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidestone Funds Impact and Strategic Alternatives 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 Strategic Alternatives 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 Impact has no effect on the direction of Strategic Alternatives i.e., Strategic Alternatives and Guidestone Funds go up and down completely randomly.
Pair Corralation between Strategic Alternatives and Guidestone Funds
Assuming the 90 days horizon Strategic Alternatives is expected to generate 4.34 times less return on investment than Guidestone Funds. But when comparing it to its historical volatility, Strategic Alternatives Fund is 7.46 times less risky than Guidestone Funds. It trades about 0.37 of its potential returns per unit of risk. Guidestone Funds Impact is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,165 in Guidestone Funds Impact on November 9, 2024 and sell it today you would earn a total of 44.00 from holding Guidestone Funds Impact or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Alternatives Fund vs. Guidestone Funds Impact
Performance |
| Timeline |
| Strategic Alternatives |
| Guidestone Funds Impact |
Strategic Alternatives and Guidestone Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Alternatives and Guidestone Funds
The main advantage of trading using opposite Strategic Alternatives and Guidestone Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Alternatives 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.| Strategic Alternatives vs. Salient Mlp Energy | Strategic Alternatives vs. Firsthand Alternative Energy | Strategic Alternatives vs. Oil Gas Ultrasector | Strategic Alternatives vs. Jennison Natural Resources |
| Guidestone Funds vs. Transamerica International Small | Guidestone Funds vs. Franklin Small Cap | Guidestone Funds vs. Glg Intl Small | Guidestone Funds vs. Rational Defensive Growth |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |