Correlation Between Guidepath Multi and Profunds Money

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

By analyzing existing cross correlation between Guidepath Multi Asset Income and Profunds Money, you can compare the effects of market volatilities on Guidepath Multi and Profunds Money 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 Multi with a short position of Profunds Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Multi and Profunds Money.

Diversification Opportunities for Guidepath Multi and Profunds Money

0.0

Correlation Coefficient

Guidepath Multi  Profunds Money

Pay attention - limited upside

The 3 months correlation between Guidepath and Profunds is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Multi Asset Income and Profunds Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Money and Guidepath Multi 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 Multi Asset Income are associated (or correlated) with Profunds Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Money has no effect on the direction of Guidepath Multi i.e., Guidepath Multi and Profunds Money go up and down completely randomly.

Pair Corralation between Guidepath Multi and Profunds Money

If you would invest  100.00  in Profunds Money on May 5, 2025 and sell it today you would earn a total of  0.00  from holding Profunds Money or generate 0.0% return on investment over 90 days.

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

Guidepath Multi Asset Income  vs.  Profunds Money

Guidepath Multi Asset

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Multi Asset Income are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Guidepath Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Profunds Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days Profunds Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Profunds Money is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guidepath Multi and Profunds Money

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

The idea behind Guidepath Multi Asset Income and Profunds Money 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 Commodity Directory module to find actively traded commodities issued by global exchanges.