Correlation Between Guggenheim Floating and Gmo Opportunistic
Can any of the company-specific risk be diversified away by investing in both Guggenheim Floating and Gmo Opportunistic 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 Guggenheim Floating and Gmo Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Floating Rate and Gmo Opportunistic Income, you can compare the effects of market volatilities on Guggenheim Floating and Gmo Opportunistic 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 Guggenheim Floating with a short position of Gmo Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Floating and Gmo Opportunistic.
Diversification Opportunities for Guggenheim Floating and Gmo Opportunistic
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and Gmo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Floating Rate and Gmo Opportunistic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Opportunistic Income and Guggenheim Floating 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 Guggenheim Floating Rate are associated (or correlated) with Gmo Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Opportunistic Income has no effect on the direction of Guggenheim Floating i.e., Guggenheim Floating and Gmo Opportunistic go up and down completely randomly.
Pair Corralation between Guggenheim Floating and Gmo Opportunistic
Assuming the 90 days horizon Guggenheim Floating Rate is expected to generate 1.3 times more return on investment than Gmo Opportunistic. However, Guggenheim Floating is 1.3 times more volatile than Gmo Opportunistic Income. It trades about 0.21 of its potential returns per unit of risk. Gmo Opportunistic Income is currently generating about 0.19 per unit of risk. If you would invest 2,024 in Guggenheim Floating Rate on September 2, 2024 and sell it today you would earn a total of 400.00 from holding Guggenheim Floating Rate or generate 19.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Floating Rate vs. Gmo Opportunistic Income
Performance |
| Timeline |
| Guggenheim Floating Rate |
| Gmo Opportunistic Income |
Guggenheim Floating and Gmo Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Floating and Gmo Opportunistic
The main advantage of trading using opposite Guggenheim Floating and Gmo Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Floating position performs unexpectedly, Gmo Opportunistic 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 Gmo Opportunistic will offset losses from the drop in Gmo Opportunistic's long position.| Guggenheim Floating vs. Guggenheim Total Return | Guggenheim Floating vs. Guggenheim Macro Opportunities | Guggenheim Floating vs. Guggenheim Floating Rate | Guggenheim Floating vs. Guggenheim Floating Rate |
| Gmo Opportunistic vs. Gmo E Plus | Gmo Opportunistic vs. Gmo Trust | Gmo Opportunistic vs. Gmo Treasury Fund | Gmo Opportunistic vs. Gmo Trust |
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.
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