Correlation Between Gurtin California and Performance Trust

Can any of the company-specific risk be diversified away by investing in both Gurtin California and Performance Trust 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 Gurtin California and Performance Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gurtin California Muni and Performance Trust Strategic, you can compare the effects of market volatilities on Gurtin California and Performance Trust 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 Gurtin California with a short position of Performance Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurtin California and Performance Trust.

Diversification Opportunities for Gurtin California and Performance Trust

0.98

Correlation Coefficient

Gurtin California  Performance Trust

Almost no diversification

The 3 months correlation between Gurtin and Performance is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Gurtin California Muni and Performance Trust Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Trust and Gurtin California 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 Gurtin California Muni are associated (or correlated) with Performance Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Trust has no effect on the direction of Gurtin California i.e., Gurtin California and Performance Trust go up and down completely randomly.

Pair Corralation between Gurtin California and Performance Trust

Assuming the 90 days horizon Gurtin California is expected to generate 1.78 times less return on investment than Performance Trust. But when comparing it to its historical volatility, Gurtin California Muni is 2.84 times less risky than Performance Trust. It trades about 0.3 of its potential returns per unit of risk. Performance Trust Strategic is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,941  in Performance Trust Strategic on July 4, 2025 and sell it today you would earn a total of  59.00  from holding Performance Trust Strategic or generate 3.04% return on investment over 90 days.

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

Gurtin California Muni  vs.  Performance Trust Strategic

Gurtin California Muni

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gurtin California Muni are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Gurtin California is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Performance Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Trust Strategic are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Performance Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gurtin California and Performance Trust

The main advantage of trading using opposite Gurtin California and Performance Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurtin California position performs unexpectedly, Performance Trust 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 Performance Trust will offset losses from the drop in Performance Trust's long position.

The idea behind Gurtin California Muni and Performance Trust Strategic 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.