Correlation Between Guidemark(r) Large and Jhancock Disciplined

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

By analyzing existing cross correlation between Guidemark Large Cap and Jhancock Disciplined Value, you can compare the effects of market volatilities on Guidemark(r) Large and Jhancock Disciplined 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 Guidemark(r) Large with a short position of Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark(r) Large and Jhancock Disciplined.

Diversification Opportunities for Guidemark(r) Large and Jhancock Disciplined

0.99

Correlation Coefficient

Guidemark(r) Large  Jhancock Disciplined

No risk reduction

The 3 months correlation between Guidemark(r) and Jhancock is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined and Guidemark(r) Large 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 Guidemark Large Cap are associated (or correlated) with Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Guidemark(r) Large i.e., Guidemark(r) Large and Jhancock Disciplined go up and down completely randomly.

Pair Corralation between Guidemark(r) Large and Jhancock Disciplined

Assuming the 90 days horizon Guidemark(r) Large is expected to generate 2.35 times less return on investment than Jhancock Disciplined. In addition to that, Guidemark(r) Large is 1.22 times more volatile than Jhancock Disciplined Value. It trades about 0.01 of its total potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.04 per unit of volatility. If you would invest  2,225  in Jhancock Disciplined Value on March 19, 2025 and sell it today you would earn a total of  126.00  from holding Jhancock Disciplined Value or generate 5.66% return on investment over 90 days.

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

Guidemark Large Cap  vs.  Jhancock Disciplined Value

Guidemark Large Cap

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Guidemark Large Cap are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Guidemark(r) Large may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Jhancock Disciplined

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Disciplined Value are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jhancock Disciplined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guidemark(r) Large and Jhancock Disciplined

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

The idea behind Guidemark Large Cap and Jhancock Disciplined Value 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.