Correlation Between Foundry Partners and Guidepath(r) Tactical

Can any of the company-specific risk be diversified away by investing in both Foundry Partners and Guidepath(r) Tactical 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 Foundry Partners and Guidepath(r) Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Foundry Partners Fundamental and Guidepath Tactical Allocation, you can compare the effects of market volatilities on Foundry Partners and Guidepath(r) Tactical 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 Foundry Partners with a short position of Guidepath(r) Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foundry Partners and Guidepath(r) Tactical.

Diversification Opportunities for Foundry Partners and Guidepath(r) Tactical

0.89

Correlation Coefficient

Foundry Partners  Guidepath(r) Tactical

Very poor diversification

The 3 months correlation between Foundry and Guidepath(r) is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Foundry Partners Fundamental and Guidepath Tactical Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath(r) Tactical and Foundry Partners 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 Foundry Partners Fundamental are associated (or correlated) with Guidepath(r) Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath(r) Tactical has no effect on the direction of Foundry Partners i.e., Foundry Partners and Guidepath(r) Tactical go up and down completely randomly.

Pair Corralation between Foundry Partners and Guidepath(r) Tactical

Assuming the 90 days horizon Foundry Partners Fundamental is expected to under-perform the Guidepath(r) Tactical. In addition to that, Foundry Partners is 2.3 times more volatile than Guidepath Tactical Allocation. It trades about -0.05 of its total potential returns per unit of risk. Guidepath Tactical Allocation is currently generating about 0.0 per unit of volatility. If you would invest  1,387  in Guidepath Tactical Allocation on May 15, 2025 and sell it today you would lose (12.00) from holding Guidepath Tactical Allocation or give up 0.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Foundry Partners Fundamental  vs.  Guidepath Tactical Allocation

Foundry Partners Fun

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Foundry Partners Fundamental are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Foundry Partners may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Guidepath(r) Tactical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Tactical Allocation are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Guidepath(r) Tactical may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Foundry Partners and Guidepath(r) Tactical

The main advantage of trading using opposite Foundry Partners and Guidepath(r) Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foundry Partners position performs unexpectedly, Guidepath(r) Tactical 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 Guidepath(r) Tactical will offset losses from the drop in Guidepath(r) Tactical's long position.

The idea behind Foundry Partners Fundamental and Guidepath Tactical Allocation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.