Correlation Between Guidepath Managed and Fuller Thaler

Can any of the company-specific risk be diversified away by investing in both Guidepath Managed and Fuller Thaler 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 Guidepath Managed and Fuller Thaler into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guidepath Managed Futures and Fuller Thaler Behavioral, you can compare the effects of market volatilities on Guidepath Managed and Fuller Thaler 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 Guidepath Managed with a short position of Fuller Thaler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Managed and Fuller Thaler.

Diversification Opportunities for Guidepath Managed and Fuller Thaler

-0.34

Correlation Coefficient

Guidepath Managed  Fuller Thaler

Very good diversification

The 3 months correlation between Guidepath and Fuller is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures and Fuller Thaler Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuller Thaler Behavioral and Guidepath Managed 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 Guidepath Managed Futures are associated (or correlated) with Fuller Thaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuller Thaler Behavioral has no effect on the direction of Guidepath Managed i.e., Guidepath Managed and Fuller Thaler go up and down completely randomly.

Pair Corralation between Guidepath Managed and Fuller Thaler

Assuming the 90 days horizon Guidepath Managed Futures is expected to under-perform the Fuller Thaler. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guidepath Managed Futures is 1.5 times less risky than Fuller Thaler. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Fuller Thaler Behavioral is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  4,047  in Fuller Thaler Behavioral on April 25, 2025 and sell it today you would earn a total of  1,444  from holding Fuller Thaler Behavioral or generate 35.68% return on investment over 90 days.

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

Guidepath Managed Futures  vs.  Fuller Thaler Behavioral

Guidepath Managed Futures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Managed Futures are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Guidepath Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fuller Thaler Behavioral

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fuller Thaler Behavioral are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fuller Thaler showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Guidepath Managed and Fuller Thaler

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

The idea behind Guidepath Managed Futures and Fuller Thaler Behavioral 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.