Correlation Between Pimco Stocksplus and Guidepath Managed

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

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

Diversification Opportunities for Pimco Stocksplus and Guidepath Managed

0.94

Correlation Coefficient

Pimco Stocksplus  Guidepath Managed

Almost no diversification

The 3 months correlation between Pimco and Guidepath is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Stocksplus Long and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures and Pimco Stocksplus 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 Pimco Stocksplus Long are associated (or correlated) with Guidepath Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Pimco Stocksplus i.e., Pimco Stocksplus and Guidepath Managed go up and down completely randomly.

Pair Corralation between Pimco Stocksplus and Guidepath Managed

Assuming the 90 days horizon Pimco Stocksplus Long is expected to generate 0.88 times more return on investment than Guidepath Managed. However, Pimco Stocksplus Long is 1.14 times less risky than Guidepath Managed. It trades about 0.25 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.05 per unit of risk. If you would invest  1,831  in Pimco Stocksplus Long on August 2, 2025 and sell it today you would earn a total of  79.00  from holding Pimco Stocksplus Long or generate 4.31% return on investment over 90 days.

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

Pimco Stocksplus Long  vs.  Guidepath Managed Futures

Pimco Stocksplus Long

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Stocksplus Long are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Pimco Stocksplus may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Guidepath Managed Futures

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Managed Futures 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, Guidepath Managed may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Pimco Stocksplus and Guidepath Managed

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

The idea behind Pimco Stocksplus Long and Guidepath Managed Futures 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..