Correlation Between Sp 500 and Guidepath(r) Tactical

Can any of the company-specific risk be diversified away by investing in both Sp 500 and Guidepath(r) Tactical 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 Sp 500 and Guidepath(r) Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sp 500 2x and Guidepath Tactical Allocation, you can compare the effects of market volatilities on Sp 500 and Guidepath(r) Tactical 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 Sp 500 with a short position of Guidepath(r) Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp 500 and Guidepath(r) Tactical.

Diversification Opportunities for Sp 500 and Guidepath(r) Tactical

0.0

Correlation Coefficient

Sp 500  Guidepath(r) Tactical

Pay attention - limited upside

The 3 months correlation between RYTNX and Guidepath(r) is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sp 500 2x and Guidepath Tactical Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath(r) Tactical and Sp 500 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 Sp 500 2x are associated (or correlated) with Guidepath(r) Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath(r) Tactical has no effect on the direction of Sp 500 i.e., Sp 500 and Guidepath(r) Tactical go up and down completely randomly.

Pair Corralation between Sp 500 and Guidepath(r) Tactical

If you would invest  1,283  in Guidepath Tactical Allocation on May 12, 2025 and sell it today you would earn a total of  76.00  from holding Guidepath Tactical Allocation or generate 5.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Sp 500 2x  vs.  Guidepath Tactical Allocation

Sp 500 2x

Risk-Adjusted Performance

Solid

Over the last 90 days Sp 500 2x has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Sp 500 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Guidepath(r) Tactical

Risk-Adjusted Performance

Good

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

Pair Trading with Sp 500 and Guidepath(r) Tactical

The main advantage of trading using opposite Sp 500 and Guidepath(r) Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp 500 position performs unexpectedly, Guidepath(r) Tactical 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(r) Tactical will offset losses from the drop in Guidepath(r) Tactical's long position.

The idea behind Sp 500 2x and Guidepath Tactical Allocation 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.