Correlation Between Guidestone Funds and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Guidestone Funds and Issachar Fund 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 Guidestone Funds and Issachar Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidestone Funds International and Issachar Fund Class, you can compare the effects of market volatilities on Guidestone Funds and Issachar Fund 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 Guidestone Funds with a short position of Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidestone Funds and Issachar Fund.
Diversification Opportunities for Guidestone Funds and Issachar Fund
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guidestone and Issachar is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Guidestone Funds International and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class and Guidestone Funds 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 Guidestone Funds International are associated (or correlated) with Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Guidestone Funds i.e., Guidestone Funds and Issachar Fund go up and down completely randomly.
Pair Corralation between Guidestone Funds and Issachar Fund
Assuming the 90 days horizon Guidestone Funds International is expected to generate 0.32 times more return on investment than Issachar Fund. However, Guidestone Funds International is 3.09 times less risky than Issachar Fund. It trades about 0.32 of its potential returns per unit of risk. Issachar Fund Class is currently generating about -0.01 per unit of risk. If you would invest 1,147 in Guidestone Funds International on November 3, 2024 and sell it today you would earn a total of 61.00 from holding Guidestone Funds International or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidestone Funds International vs. Issachar Fund Class
Performance |
| Timeline |
| Guidestone Funds Int |
| Issachar Fund Class |
Guidestone Funds and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidestone Funds and Issachar Fund
The main advantage of trading using opposite Guidestone Funds and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidestone Funds position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.| Guidestone Funds vs. Prudential Financial Services | Guidestone Funds vs. Angel Oak Financial | Guidestone Funds vs. 1919 Financial Services | Guidestone Funds vs. Icon Financial Fund |
| Issachar Fund vs. Versatile Bond Portfolio | Issachar Fund vs. Touchstone Ultra Short | Issachar Fund vs. Blrc Sgy Mnp | Issachar Fund vs. Rationalpier 88 Convertible |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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