Correlation Between Guidemark Large and Rbc Emerging

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

Diversification Opportunities for Guidemark Large and Rbc Emerging

0.92

Correlation Coefficient

Guidemark Large  Rbc Emerging

Almost no diversification

The 3 months correlation between Guidemark and Rbc is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Rbc Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Emerging Markets 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 Rbc Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Emerging Markets has no effect on the direction of Guidemark Large i.e., Guidemark Large and Rbc Emerging go up and down completely randomly.

Pair Corralation between Guidemark Large and Rbc Emerging

Assuming the 90 days horizon Guidemark Large is expected to generate 1.94 times less return on investment than Rbc Emerging. But when comparing it to its historical volatility, Guidemark Large Cap is 1.0 times less risky than Rbc Emerging. It trades about 0.08 of its potential returns per unit of risk. Rbc Emerging Markets is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,358  in Rbc Emerging Markets on August 24, 2025 and sell it today you would earn a total of  112.00  from holding Rbc Emerging Markets or generate 8.25% return on investment over 90 days.

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

Guidemark Large Cap  vs.  Rbc Emerging Markets

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 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Guidemark Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rbc Emerging Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rbc Emerging Markets are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Rbc Emerging may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Guidemark Large and Rbc Emerging

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

The idea behind Guidemark Large Cap and Rbc Emerging Markets 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.