Correlation Between International Equity and Guidestone Funds
Can any of the company-specific risk be diversified away by investing in both International Equity 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 International Equity and Guidestone Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Equity Index and Guidestone Funds International, you can compare the effects of market volatilities on International Equity 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 International Equity with a short position of Guidestone Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Equity and Guidestone Funds.
Diversification Opportunities for International Equity and Guidestone Funds
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between International and Guidestone is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding International Equity Index 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 International Equity 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 International Equity Index 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 International Equity i.e., International Equity and Guidestone Funds go up and down completely randomly.
Pair Corralation between International Equity and Guidestone Funds
Assuming the 90 days horizon International Equity Index is expected to generate 1.02 times more return on investment than Guidestone Funds. However, International Equity is 1.02 times more volatile than Guidestone Funds International. It trades about 0.33 of its potential returns per unit of risk. Guidestone Funds International is currently generating about 0.32 per unit of risk. If you would invest 1,145 in International Equity Index on November 3, 2024 and sell it today you would earn a total of 61.00 from holding International Equity Index or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
International Equity Index vs. Guidestone Funds International
Performance |
| Timeline |
| International Equity |
| Guidestone Funds Int |
International Equity and Guidestone Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Equity and Guidestone Funds
The main advantage of trading using opposite International Equity and Guidestone Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Equity 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.| International Equity vs. Voya Retirement Servative | International Equity vs. Wilmington Trust Retirement | International Equity vs. Jp Morgan Smartretirement | International Equity vs. Voya Target Retirement |
| Guidestone Funds vs. Prudential Financial Services | Guidestone Funds vs. Angel Oak Financial | Guidestone Funds vs. 1919 Financial Services | Guidestone Funds vs. Icon Financial 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |