Correlation Between Guidemark Large and Astor Star

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

Diversification Opportunities for Guidemark Large and Astor Star

0.96

Correlation Coefficient

Guidemark Large  Astor Star

Almost no diversification

The 3 months correlation between Guidemark and Astor is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund 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 Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Guidemark Large i.e., Guidemark Large and Astor Star go up and down completely randomly.

Pair Corralation between Guidemark Large and Astor Star

Assuming the 90 days horizon Guidemark Large Cap is expected to generate 1.94 times more return on investment than Astor Star. However, Guidemark Large is 1.94 times more volatile than Astor Star Fund. It trades about 0.22 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.25 per unit of risk. If you would invest  1,250  in Guidemark Large Cap on June 15, 2025 and sell it today you would earn a total of  121.00  from holding Guidemark Large Cap or generate 9.68% 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.  Astor Star Fund

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 October 2025.

Astor Star Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Star Fund are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Astor Star 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 Astor Star

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

The idea behind Guidemark Large Cap and Astor Star Fund 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..