Correlation Between Mid Cap and Guidepath(r) Managed

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

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

Diversification Opportunities for Mid Cap and Guidepath(r) Managed

0.07

Correlation Coefficient

Mid Cap  Guidepath(r) Managed

Significant diversification

The 3 months correlation between Mid and Guidepath(r) is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth Profund 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 Mid Cap 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 Mid Cap Growth Profund are associated (or correlated) with Guidepath(r) 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 Mid Cap i.e., Mid Cap and Guidepath(r) Managed go up and down completely randomly.

Pair Corralation between Mid Cap and Guidepath(r) Managed

Assuming the 90 days horizon Mid Cap Growth Profund is expected to under-perform the Guidepath(r) Managed. In addition to that, Mid Cap is 1.3 times more volatile than Guidepath Managed Futures. It trades about -0.01 of its total potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.03 per unit of volatility. If you would invest  662.00  in Guidepath Managed Futures on August 26, 2025 and sell it today you would earn a total of  8.00  from holding Guidepath Managed Futures or generate 1.21% return on investment over 90 days.

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

Mid Cap Growth Profund  vs.  Guidepath Managed Futures

Mid Cap Growth

Risk-Adjusted Performance

Weakest

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

Guidepath Managed Futures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Managed Futures are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Guidepath(r) Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mid Cap and Guidepath(r) Managed

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

The idea behind Mid Cap Growth Profund 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.