Correlation Between Guidestone Funds and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Guidestone Funds and Emerging Markets 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 Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidestone Funds Impact and Emerging Markets Equity, you can compare the effects of market volatilities on Guidestone Funds and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidestone Funds and Emerging Markets.
Diversification Opportunities for Guidestone Funds and Emerging Markets
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guidestone and Emerging is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guidestone Funds Impact and Emerging Markets Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Equity 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 Impact are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Equity has no effect on the direction of Guidestone Funds i.e., Guidestone Funds and Emerging Markets go up and down completely randomly.
Pair Corralation between Guidestone Funds and Emerging Markets
Assuming the 90 days horizon Guidestone Funds Impact is expected to generate 1.05 times more return on investment than Emerging Markets. However, Guidestone Funds is 1.05 times more volatile than Emerging Markets Equity. It trades about 0.09 of its potential returns per unit of risk. Emerging Markets Equity is currently generating about -0.11 per unit of risk. If you would invest 1,162 in Guidestone Funds Impact on October 23, 2024 and sell it today you would earn a total of 13.00 from holding Guidestone Funds Impact or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidestone Funds Impact vs. Emerging Markets Equity
Performance |
| Timeline |
| Guidestone Funds Impact |
| Emerging Markets Equity |
Guidestone Funds and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidestone Funds and Emerging Markets
The main advantage of trading using opposite Guidestone Funds and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidestone Funds position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Guidestone Funds vs. Environment And Alternative | Guidestone Funds vs. World Energy Fund | Guidestone Funds vs. Blackrock All Cap Energy | Guidestone Funds vs. Advisory Research Mlp |
| Emerging Markets vs. Calvert Large Cap | Emerging Markets vs. M Large Cap | Emerging Markets vs. Transamerica Large Cap | Emerging Markets vs. Americafirst Large Cap |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |