Correlation Between Guidemark Large and Fidelity Intl

Can any of the company-specific risk be diversified away by investing in both Guidemark Large and Fidelity Intl 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 Large and Fidelity Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guidemark Large Cap and Fidelity Intl Sustainability, you can compare the effects of market volatilities on Guidemark Large and Fidelity Intl 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 Large with a short position of Fidelity Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Large and Fidelity Intl.

Diversification Opportunities for Guidemark Large and Fidelity Intl

0.57

Correlation Coefficient

Guidemark Large  Fidelity Intl

Very weak diversification

The 3 months correlation between Guidemark and Fidelity is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Fidelity Intl Sustainability in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Intl Sustai and Guidemark Large 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 Large Cap are associated (or correlated) with Fidelity Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Intl Sustai has no effect on the direction of Guidemark Large i.e., Guidemark Large and Fidelity Intl go up and down completely randomly.

Pair Corralation between Guidemark Large and Fidelity Intl

Assuming the 90 days horizon Guidemark Large is expected to generate 1.2 times less return on investment than Fidelity Intl. But when comparing it to its historical volatility, Guidemark Large Cap is 1.0 times less risky than Fidelity Intl. It trades about 0.08 of its potential returns per unit of risk. Fidelity Intl Sustainability is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,479  in Fidelity Intl Sustainability on September 6, 2025 and sell it today you would earn a total of  65.00  from holding Fidelity Intl Sustainability or generate 4.39% return on investment over 90 days.

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

Guidemark Large Cap  vs.  Fidelity Intl Sustainability

Guidemark Large Cap

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Guidemark Large Cap are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Guidemark Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Intl Sustai

Risk-Adjusted Performance

Fair

Over the last 90 days Fidelity Intl Sustainability has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Fidelity Intl is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guidemark Large and Fidelity Intl

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

The idea behind Guidemark Large Cap and Fidelity Intl Sustainability 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.

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.