Correlation Between Guggenheim Macro and Balter Invenomic
Can any of the company-specific risk be diversified away by investing in both Guggenheim Macro and Balter Invenomic 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 Macro and Balter Invenomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Macro Opportunities and Balter Invenomic Fund, you can compare the effects of market volatilities on Guggenheim Macro and Balter Invenomic 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 Macro with a short position of Balter Invenomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Macro and Balter Invenomic.
Diversification Opportunities for Guggenheim Macro and Balter Invenomic
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GUGGENHEIM and Balter is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Macro Opportunities and Balter Invenomic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balter Invenomic and Guggenheim Macro 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 Macro Opportunities are associated (or correlated) with Balter Invenomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balter Invenomic has no effect on the direction of Guggenheim Macro i.e., Guggenheim Macro and Balter Invenomic go up and down completely randomly.
Pair Corralation between Guggenheim Macro and Balter Invenomic
Assuming the 90 days horizon Guggenheim Macro Opportunities is expected to generate 0.18 times more return on investment than Balter Invenomic. However, Guggenheim Macro Opportunities is 5.57 times less risky than Balter Invenomic. It trades about 0.32 of its potential returns per unit of risk. Balter Invenomic Fund is currently generating about 0.05 per unit of risk. If you would invest 2,459 in Guggenheim Macro Opportunities on November 28, 2024 and sell it today you would earn a total of 21.00 from holding Guggenheim Macro Opportunities or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Macro Opportunities vs. Balter Invenomic Fund
Performance |
| Timeline |
| Guggenheim Macro Opp |
| Balter Invenomic |
Guggenheim Macro and Balter Invenomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Macro and Balter Invenomic
The main advantage of trading using opposite Guggenheim Macro and Balter Invenomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Macro position performs unexpectedly, Balter Invenomic 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 Balter Invenomic will offset losses from the drop in Balter Invenomic's long position.| Guggenheim Macro vs. Guggenheim Total Return | Guggenheim Macro vs. Guggenheim Floating Rate | Guggenheim Macro vs. Jpmorgan Strategic Income | Guggenheim Macro vs. Guggenheim Macro Opportunities |
| Balter Invenomic vs. Intal High Relative | Balter Invenomic vs. Arrow Managed Futures | Balter Invenomic vs. Scharf Global Opportunity | Balter Invenomic vs. Alternative Asset Allocation |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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