Correlation Between Barings Active and Guggenheim Long
Can any of the company-specific risk be diversified away by investing in both Barings Active and Guggenheim Long 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 Barings Active and Guggenheim Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Guggenheim Long Short, you can compare the effects of market volatilities on Barings Active and Guggenheim Long 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 Barings Active with a short position of Guggenheim Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Guggenheim Long.
Diversification Opportunities for Barings Active and Guggenheim Long
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and GUGGENHEIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Guggenheim Long Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Long Short and Barings Active 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 Barings Active Short are associated (or correlated) with Guggenheim Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Long Short has no effect on the direction of Barings Active i.e., Barings Active and Guggenheim Long go up and down completely randomly.
Pair Corralation between Barings Active and Guggenheim Long
Assuming the 90 days horizon Barings Active is expected to generate 1.4 times less return on investment than Guggenheim Long. But when comparing it to its historical volatility, Barings Active Short is 3.7 times less risky than Guggenheim Long. It trades about 0.17 of its potential returns per unit of risk. Guggenheim Long Short is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,842 in Guggenheim Long Short on August 24, 2024 and sell it today you would earn a total of 351.00 from holding Guggenheim Long Short or generate 19.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Guggenheim Long Short
Performance |
| Timeline |
| Barings Active Short |
| Guggenheim Long Short |
Barings Active and Guggenheim Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Guggenheim Long
The main advantage of trading using opposite Barings Active and Guggenheim Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Guggenheim Long 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 Long will offset losses from the drop in Guggenheim Long's long position.| Barings Active vs. Vanguard Institutional Short Term | Barings Active vs. Jhancock Short Duration | Barings Active vs. Locorr Longshort Modities | Barings Active vs. Astor Longshort Fund |
| Guggenheim Long vs. Tax Managed Mid Small | Guggenheim Long vs. Artisan Small Cap | Guggenheim Long vs. Glg Intl Small | Guggenheim Long vs. Champlain Small |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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