Correlation Between Thrivent Municipal and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Thrivent Municipal and Guggenheim 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 Thrivent Municipal and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Municipal Bond and Guggenheim Managed Futures, you can compare the effects of market volatilities on Thrivent Municipal and Guggenheim 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 Thrivent Municipal with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Municipal and Guggenheim Managed.
Diversification Opportunities for Thrivent Municipal and Guggenheim Managed
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Guggenheim is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Municipal Bond and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Thrivent Municipal 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 Thrivent Municipal Bond are associated (or correlated) with Guggenheim Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Managed has no effect on the direction of Thrivent Municipal i.e., Thrivent Municipal and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Thrivent Municipal and Guggenheim Managed
Assuming the 90 days horizon Thrivent Municipal Bond is expected to under-perform the Guggenheim Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Thrivent Municipal Bond is 2.71 times less risky than Guggenheim Managed. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Guggenheim Managed Futures is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,056 in Guggenheim Managed Futures on November 3, 2024 and sell it today you would lose (6.00) from holding Guggenheim Managed Futures or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Municipal Bond vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Thrivent Municipal Bond |
| Guggenheim Managed |
Thrivent Municipal and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Municipal and Guggenheim Managed
The main advantage of trading using opposite Thrivent Municipal and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Municipal position performs unexpectedly, Guggenheim 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 Guggenheim Managed will offset losses from the drop in Guggenheim Managed's long position.| Thrivent Municipal vs. Ab Bond Inflation | Thrivent Municipal vs. Baird Quality Intermediate | Thrivent Municipal vs. Blrc Sgy Mnp | Thrivent Municipal vs. Chartwell Short Duration |
| Guggenheim Managed vs. Federated Emerging Market | Guggenheim Managed vs. Eagle Mlp Strategy | Guggenheim Managed vs. Kinetics Market Opportunities | Guggenheim Managed vs. Ashmore Emerging Markets |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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