Correlation Between Guidepath Managed and Vulcan Value

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

Diversification Opportunities for Guidepath Managed and Vulcan Value

-0.43

Correlation Coefficient

Guidepath Managed  Vulcan Value

Very good diversification

The 3 months correlation between Guidepath and Vulcan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures and Vulcan Value Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Value Partners 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 Vulcan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Value Partners has no effect on the direction of Guidepath Managed i.e., Guidepath Managed and Vulcan Value go up and down completely randomly.

Pair Corralation between Guidepath Managed and Vulcan Value

Assuming the 90 days horizon Guidepath Managed is expected to generate 201.44 times less return on investment than Vulcan Value. But when comparing it to its historical volatility, Guidepath Managed Futures is 2.22 times less risky than Vulcan Value. It trades about 0.0 of its potential returns per unit of risk. Vulcan Value Partners is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,647  in Vulcan Value Partners on April 24, 2025 and sell it today you would earn a total of  301.00  from holding Vulcan Value Partners or generate 11.37% return on investment over 90 days.

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

Guidepath Managed Futures  vs.  Vulcan Value Partners

Guidepath Managed Futures

Risk-Adjusted Performance

Weak

Over the last 90 days Guidepath Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. 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.

Vulcan Value Partners

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Value Partners are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Vulcan Value may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Guidepath Managed and Vulcan Value

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

The idea behind Guidepath Managed Futures and Vulcan Value Partners 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.