Correlation Between Federated Short and Guggenheim High
Can any of the company-specific risk be diversified away by investing in both Federated Short and Guggenheim High 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 Federated Short and Guggenheim High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Short Intermediate Duration and Guggenheim High Yield, you can compare the effects of market volatilities on Federated Short and Guggenheim High 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 Federated Short with a short position of Guggenheim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Short and Guggenheim High.
Diversification Opportunities for Federated Short and Guggenheim High
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and Guggenheim is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Federated Short Intermediate D and Guggenheim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim High Yield and Federated Short 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 Federated Short Intermediate Duration are associated (or correlated) with Guggenheim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim High Yield has no effect on the direction of Federated Short i.e., Federated Short and Guggenheim High go up and down completely randomly.
Pair Corralation between Federated Short and Guggenheim High
Assuming the 90 days horizon Federated Short is expected to generate 2.24 times less return on investment than Guggenheim High. But when comparing it to its historical volatility, Federated Short Intermediate Duration is 1.83 times less risky than Guggenheim High. It trades about 0.09 of its potential returns per unit of risk. Guggenheim High Yield is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 863.00 in Guggenheim High Yield on January 18, 2025 and sell it today you would earn a total of 118.00 from holding Guggenheim High Yield or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Short Intermediate D vs. Guggenheim High Yield
Performance |
| Timeline |
| Federated Short Inte |
| Guggenheim High Yield |
Federated Short and Guggenheim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Short and Guggenheim High
The main advantage of trading using opposite Federated Short and Guggenheim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Short position performs unexpectedly, Guggenheim High 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 High will offset losses from the drop in Guggenheim High's long position.| Federated Short vs. Ab Global Bond | Federated Short vs. Ab Bond Inflation | Federated Short vs. Jhvit Core Bond | Federated Short vs. Versatile Bond Portfolio |
| Guggenheim High vs. Wealthbuilder Moderate Balanced | Guggenheim High vs. Lifestyle Ii Moderate | Guggenheim High vs. Target Retirement 2040 | Guggenheim High vs. Retirement Living Through |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |