Correlation Between Eic Value and Guggenheim Macro
Can any of the company-specific risk be diversified away by investing in both Eic Value and Guggenheim Macro 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 Eic Value and Guggenheim Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on Eic Value and Guggenheim Macro 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 Eic Value with a short position of Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Guggenheim Macro.
Diversification Opportunities for Eic Value and Guggenheim Macro
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eic and Guggenheim is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Guggenheim Macro Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Macro Opp and Eic Value 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 Eic Value Fund are associated (or correlated) with Guggenheim Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Macro Opp has no effect on the direction of Eic Value i.e., Eic Value and Guggenheim Macro go up and down completely randomly.
Pair Corralation between Eic Value and Guggenheim Macro
Assuming the 90 days horizon Eic Value Fund is expected to generate 7.58 times more return on investment than Guggenheim Macro. However, Eic Value is 7.58 times more volatile than Guggenheim Macro Opportunities. It trades about 0.31 of its potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about 0.26 per unit of risk. If you would invest 1,845 in Eic Value Fund on September 1, 2024 and sell it today you would earn a total of 77.00 from holding Eic Value Fund or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Guggenheim Macro Opportunities
Performance |
| Timeline |
| Eic Value Fund |
| Guggenheim Macro Opp |
Eic Value and Guggenheim Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Guggenheim Macro
The main advantage of trading using opposite Eic Value and Guggenheim Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Guggenheim Macro 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 Macro will offset losses from the drop in Guggenheim Macro's long position.| Eic Value vs. Us Global Leaders | Eic Value vs. Rbc Global Opportunities | Eic Value vs. Artisan Global Unconstrained | Eic Value vs. Ab Global Risk |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |