Correlation Between Guidepath(r) Flexible and Deer Park

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

By analyzing existing cross correlation between Guidepath Flexible Income and Deer Park Total, you can compare the effects of market volatilities on Guidepath(r) Flexible and Deer Park 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(r) Flexible with a short position of Deer Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath(r) Flexible and Deer Park.

Diversification Opportunities for Guidepath(r) Flexible and Deer Park

0.84

Correlation Coefficient

Guidepath(r) Flexible  Deer Park

Very poor diversification

The 3 months correlation between Guidepath(r) and Deer is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Flexible Income and Deer Park Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deer Park Total and Guidepath(r) Flexible 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 Flexible Income are associated (or correlated) with Deer Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deer Park Total has no effect on the direction of Guidepath(r) Flexible i.e., Guidepath(r) Flexible and Deer Park go up and down completely randomly.

Pair Corralation between Guidepath(r) Flexible and Deer Park

Assuming the 90 days horizon Guidepath Flexible Income is expected to generate 0.64 times more return on investment than Deer Park. However, Guidepath Flexible Income is 1.56 times less risky than Deer Park. It trades about 0.29 of its potential returns per unit of risk. Deer Park Total is currently generating about 0.07 per unit of risk. If you would invest  855.00  in Guidepath Flexible Income on April 24, 2025 and sell it today you would earn a total of  18.00  from holding Guidepath Flexible Income or generate 2.11% return on investment over 90 days.

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

Guidepath Flexible Income  vs.  Deer Park Total

Guidepath Flexible Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Flexible Income are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Guidepath(r) Flexible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Deer Park Total

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Deer Park Total are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Deer Park 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(r) Flexible and Deer Park

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

The idea behind Guidepath Flexible Income and Deer Park Total 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.