Correlation Between Guggenheim Macro and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both Guggenheim Macro and Gabelli Equity 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 Gabelli Equity 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 Gabelli Equity Trust, you can compare the effects of market volatilities on Guggenheim Macro and Gabelli Equity 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 Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Macro and Gabelli Equity.
Diversification Opportunities for Guggenheim Macro and Gabelli Equity
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GUGGENHEIM and Gabelli is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Macro Opportunities and Gabelli Equity Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity Trust 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 Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity Trust has no effect on the direction of Guggenheim Macro i.e., Guggenheim Macro and Gabelli Equity go up and down completely randomly.
Pair Corralation between Guggenheim Macro and Gabelli Equity
Assuming the 90 days horizon Guggenheim Macro Opportunities is expected to generate 0.19 times more return on investment than Gabelli Equity. However, Guggenheim Macro Opportunities is 5.14 times less risky than Gabelli Equity. It trades about 0.32 of its potential returns per unit of risk. Gabelli Equity Trust is currently generating about -0.13 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Macro Opportunities vs. Gabelli Equity Trust
Performance |
| Timeline |
| Guggenheim Macro Opp |
| Gabelli Equity Trust |
Guggenheim Macro and Gabelli Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Macro and Gabelli Equity
The main advantage of trading using opposite Guggenheim Macro and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Macro position performs unexpectedly, Gabelli Equity 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 Gabelli Equity will offset losses from the drop in Gabelli Equity'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 |
| Gabelli Equity vs. Gabelli Utility Closed | Gabelli Equity vs. Gabelli MultiMedia Mutual | Gabelli Equity vs. Gabelli Healthcare WellnessRx | Gabelli Equity vs. Liberty All Star |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |