Correlation Between Victory Incore and Guidepath(r) Growth

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

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

Diversification Opportunities for Victory Incore and Guidepath(r) Growth

0.72

Correlation Coefficient

Victory Incore  Guidepath(r) Growth

Poor diversification

The 3 months correlation between Victory and Guidepath(r) is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Victory Incore Fund and Guidepath Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Growth All and Victory Incore 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 Victory Incore Fund are associated (or correlated) with Guidepath(r) Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Growth All has no effect on the direction of Victory Incore i.e., Victory Incore and Guidepath(r) Growth go up and down completely randomly.

Pair Corralation between Victory Incore and Guidepath(r) Growth

Assuming the 90 days horizon Victory Incore is expected to generate 19.8 times less return on investment than Guidepath(r) Growth. But when comparing it to its historical volatility, Victory Incore Fund is 5.69 times less risky than Guidepath(r) Growth. It trades about 0.1 of its potential returns per unit of risk. Guidepath Growth Allocation is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  1,705  in Guidepath Growth Allocation on April 25, 2025 and sell it today you would earn a total of  265.00  from holding Guidepath Growth Allocation or generate 15.54% return on investment over 90 days.

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

Victory Incore Fund  vs.  Guidepath Growth Allocation

Victory Incore

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Victory Incore Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Victory Incore is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Guidepath Growth All

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Growth Allocation are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Guidepath(r) Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Victory Incore and Guidepath(r) Growth

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

The idea behind Victory Incore Fund and Guidepath Growth 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.