Correlation Between Select Fund and Guggenheim Styleplus
Can any of the company-specific risk be diversified away by investing in both Select Fund and Guggenheim Styleplus 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 Select Fund and Guggenheim Styleplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Select Fund R and Guggenheim Styleplus , you can compare the effects of market volatilities on Select Fund and Guggenheim Styleplus 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 Select Fund with a short position of Guggenheim Styleplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Select Fund and Guggenheim Styleplus.
Diversification Opportunities for Select Fund and Guggenheim Styleplus
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Select and Guggenheim is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Select Fund R and Guggenheim Styleplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Styleplus and Select Fund 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 Select Fund R are associated (or correlated) with Guggenheim Styleplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Styleplus has no effect on the direction of Select Fund i.e., Select Fund and Guggenheim Styleplus go up and down completely randomly.
Pair Corralation between Select Fund and Guggenheim Styleplus
Assuming the 90 days horizon Select Fund is expected to generate 1.32 times less return on investment than Guggenheim Styleplus. But when comparing it to its historical volatility, Select Fund R is 1.19 times less risky than Guggenheim Styleplus. It trades about 0.3 of its potential returns per unit of risk. Guggenheim Styleplus is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,358 in Guggenheim Styleplus on September 4, 2024 and sell it today you would earn a total of 107.00 from holding Guggenheim Styleplus or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Select Fund R vs. Guggenheim Styleplus
Performance |
| Timeline |
| Select Fund R |
| Guggenheim Styleplus |
Select Fund and Guggenheim Styleplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Select Fund and Guggenheim Styleplus
The main advantage of trading using opposite Select Fund and Guggenheim Styleplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Select Fund position performs unexpectedly, Guggenheim Styleplus 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 Styleplus will offset losses from the drop in Guggenheim Styleplus' long position.| Select Fund vs. Select Fund C | Select Fund vs. Ultra Fund C | Select Fund vs. Ultra Fund R6 | Select Fund vs. Nasdaq 100 Fund Class |
| Guggenheim Styleplus vs. Nasdaq 100 Fund Class | Guggenheim Styleplus vs. Select Fund R | Guggenheim Styleplus vs. Select Fund C | Guggenheim Styleplus vs. Nasdaq 100 Fund Class |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |