Correlation Between Guidepath(r) Managed and Geneva Smid
Can any of the company-specific risk be diversified away by investing in both Guidepath(r) Managed and Geneva Smid 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 Guidepath(r) Managed and Geneva Smid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Managed Futures and Geneva Smid Cap, you can compare the effects of market volatilities on Guidepath(r) Managed and Geneva Smid 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 Guidepath(r) Managed with a short position of Geneva Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath(r) Managed and Geneva Smid.
Diversification Opportunities for Guidepath(r) Managed and Geneva Smid
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guidepath(r) and Geneva is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures and Geneva Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geneva Smid Cap and Guidepath(r) Managed 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 Guidepath Managed Futures are associated (or correlated) with Geneva Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geneva Smid Cap has no effect on the direction of Guidepath(r) Managed i.e., Guidepath(r) Managed and Geneva Smid go up and down completely randomly.
Pair Corralation between Guidepath(r) Managed and Geneva Smid
Assuming the 90 days horizon Guidepath Managed Futures is expected to under-perform the Geneva Smid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guidepath Managed Futures is 1.43 times less risky than Geneva Smid. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Geneva Smid Cap is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 846.00 in Geneva Smid Cap on September 2, 2024 and sell it today you would earn a total of 281.00 from holding Geneva Smid Cap or generate 33.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Geneva Smid Cap
Performance |
| Timeline |
| Guidepath Managed Futures |
| Geneva Smid Cap |
Guidepath(r) Managed and Geneva Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath(r) Managed and Geneva Smid
The main advantage of trading using opposite Guidepath(r) Managed and Geneva Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath(r) Managed position performs unexpectedly, Geneva Smid 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 Geneva Smid will offset losses from the drop in Geneva Smid's long position.| Guidepath(r) Managed vs. Pimco Income Strategy | Guidepath(r) Managed vs. American Balanced Fund | Guidepath(r) Managed vs. Nuveen Real Asset | Guidepath(r) Managed vs. New Economy Fund |
| Geneva Smid vs. Pimco Global Multi Asset | Geneva Smid vs. Vanguard 500 Index | Geneva Smid vs. Calamos Strategic Total | Geneva Smid vs. Brookfield Real Assets |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |