Correlation Between Guidemark(r) Small/mid and Evaluator Conservative

Can any of the company-specific risk be diversified away by investing in both Guidemark(r) Small/mid and Evaluator Conservative 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(r) Small/mid and Evaluator Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guidemark Smallmid Cap and Evaluator Conservative Rms, you can compare the effects of market volatilities on Guidemark(r) Small/mid and Evaluator Conservative 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(r) Small/mid with a short position of Evaluator Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark(r) Small/mid and Evaluator Conservative.

Diversification Opportunities for Guidemark(r) Small/mid and Evaluator Conservative

0.9

Correlation Coefficient

Guidemark(r) Small/mid  Evaluator Conservative

Almost no diversification

The 3 months correlation between Guidemark(r) and Evaluator is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap and Evaluator Conservative Rms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Conservative and Guidemark(r) Small/mid 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 Smallmid Cap are associated (or correlated) with Evaluator Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Conservative has no effect on the direction of Guidemark(r) Small/mid i.e., Guidemark(r) Small/mid and Evaluator Conservative go up and down completely randomly.

Pair Corralation between Guidemark(r) Small/mid and Evaluator Conservative

Assuming the 90 days horizon Guidemark(r) Small/mid is expected to generate 1.1 times less return on investment than Evaluator Conservative. In addition to that, Guidemark(r) Small/mid is 3.93 times more volatile than Evaluator Conservative Rms. It trades about 0.06 of its total potential returns per unit of risk. Evaluator Conservative Rms is currently generating about 0.27 per unit of volatility. If you would invest  969.00  in Evaluator Conservative Rms on May 15, 2025 and sell it today you would earn a total of  46.00  from holding Evaluator Conservative Rms or generate 4.75% return on investment over 90 days.

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

Guidemark Smallmid Cap  vs.  Evaluator Conservative Rms

Guidemark Smallmid Cap

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Guidemark Smallmid Cap are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Guidemark(r) Small/mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Evaluator Conservative

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Conservative Rms are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Evaluator Conservative 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(r) Small/mid and Evaluator Conservative

The main advantage of trading using opposite Guidemark(r) Small/mid and Evaluator Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark(r) Small/mid position performs unexpectedly, Evaluator Conservative 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 Evaluator Conservative will offset losses from the drop in Evaluator Conservative's long position.

The idea behind Guidemark Smallmid Cap and Evaluator Conservative Rms 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.