Correlation Between Siit High and Guidestone Value
Can any of the company-specific risk be diversified away by investing in both Siit High and Guidestone Value 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 Siit High and Guidestone Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Guidestone Value Equity, you can compare the effects of market volatilities on Siit High and Guidestone Value 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 Siit High with a short position of Guidestone Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Guidestone Value.
Diversification Opportunities for Siit High and Guidestone Value
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siit and Guidestone is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Guidestone Value Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidestone Value Equity and Siit High 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 Siit High Yield are associated (or correlated) with Guidestone Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidestone Value Equity has no effect on the direction of Siit High i.e., Siit High and Guidestone Value go up and down completely randomly.
Pair Corralation between Siit High and Guidestone Value
Assuming the 90 days horizon Siit High is expected to generate 2.88 times less return on investment than Guidestone Value. But when comparing it to its historical volatility, Siit High Yield is 2.91 times less risky than Guidestone Value. It trades about 0.29 of its potential returns per unit of risk. Guidestone Value Equity is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,176 in Guidestone Value Equity on November 9, 2024 and sell it today you would earn a total of 48.00 from holding Guidestone Value Equity or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Guidestone Value Equity
Performance |
| Timeline |
| Siit High Yield |
| Guidestone Value Equity |
Siit High and Guidestone Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Guidestone Value
The main advantage of trading using opposite Siit High and Guidestone Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Guidestone Value 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 Value will offset losses from the drop in Guidestone Value's long position.| Siit High vs. Nuveen California High | Siit High vs. Aqr Risk Parity | Siit High vs. Lgm Risk Managed | Siit High vs. Copeland Risk Managed |
| Guidestone Value vs. Tax Managed International Equity | Guidestone Value vs. Old Westbury Fixed | Guidestone Value vs. Dws Equity Sector | Guidestone Value vs. Gmo Global Equity |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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