Correlation Between Guidemark Smallmid and Catalyst/smh High
Can any of the company-specific risk be diversified away by investing in both Guidemark Smallmid and Catalyst/smh High 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 Guidemark Smallmid and Catalyst/smh High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Smallmid Cap and Catalystsmh High Income, you can compare the effects of market volatilities on Guidemark Smallmid and Catalyst/smh High 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 Guidemark Smallmid with a short position of Catalyst/smh High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Smallmid and Catalyst/smh High.
Diversification Opportunities for Guidemark Smallmid and Catalyst/smh High
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guidemark and Catalyst/smh is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap and Catalystsmh High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh High Income and Guidemark Smallmid 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 Guidemark Smallmid Cap are associated (or correlated) with Catalyst/smh High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh High Income has no effect on the direction of Guidemark Smallmid i.e., Guidemark Smallmid and Catalyst/smh High go up and down completely randomly.
Pair Corralation between Guidemark Smallmid and Catalyst/smh High
Assuming the 90 days horizon Guidemark Smallmid Cap is expected to generate 3.64 times more return on investment than Catalyst/smh High. However, Guidemark Smallmid is 3.64 times more volatile than Catalystsmh High Income. It trades about 0.03 of its potential returns per unit of risk. Catalystsmh High Income is currently generating about 0.11 per unit of risk. If you would invest 1,707 in Guidemark Smallmid Cap on October 9, 2024 and sell it today you would earn a total of 270.00 from holding Guidemark Smallmid Cap or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Smallmid Cap vs. Catalystsmh High Income
Performance |
| Timeline |
| Guidemark Smallmid Cap |
| Catalystsmh High Income |
Guidemark Smallmid and Catalyst/smh High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Smallmid and Catalyst/smh High
The main advantage of trading using opposite Guidemark Smallmid and Catalyst/smh High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Smallmid position performs unexpectedly, Catalyst/smh High 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 Catalyst/smh High will offset losses from the drop in Catalyst/smh High's long position.| Guidemark Smallmid vs. Towpath Technology | Guidemark Smallmid vs. Icon Information Technology | Guidemark Smallmid vs. Global Technology Portfolio | Guidemark Smallmid vs. Red Oak Technology |
| Catalyst/smh High vs. Ab Small Cap | Catalyst/smh High vs. Tax Managed Large Cap | Catalyst/smh High vs. Rationalpier 88 Convertible | Catalyst/smh High vs. Issachar Fund Class |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |