Correlation Between Guidemark Large and Mfs International

Can any of the company-specific risk be diversified away by investing in both Guidemark Large and Mfs International 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 Mfs International 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 Mfs International Large, you can compare the effects of market volatilities on Guidemark Large and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Large and Mfs International.

Diversification Opportunities for Guidemark Large and Mfs International

0.86

Correlation Coefficient

Guidemark Large  Mfs International

Very poor diversification

The 3 months correlation between Guidemark and Mfs is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Mfs International Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Large 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Large has no effect on the direction of Guidemark Large i.e., Guidemark Large and Mfs International go up and down completely randomly.

Pair Corralation between Guidemark Large and Mfs International

Assuming the 90 days horizon Guidemark Large Cap is expected to generate 0.94 times more return on investment than Mfs International. However, Guidemark Large Cap is 1.07 times less risky than Mfs International. It trades about 0.22 of its potential returns per unit of risk. Mfs International Large is currently generating about 0.16 per unit of risk. If you would invest  1,284  in Guidemark Large Cap on July 12, 2025 and sell it today you would earn a total of  119.00  from holding Guidemark Large Cap or generate 9.27% return on investment over 90 days.

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

Guidemark Large Cap  vs.  Mfs International Large

Guidemark Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Guidemark Large Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Guidemark Large may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Mfs International Large

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs International Large are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Mfs International may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Guidemark Large and Mfs International

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

The idea behind Guidemark Large Cap and Mfs International Large 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.