Correlation Between Guggenheim Macro and Columbia Thermostat
Can any of the company-specific risk be diversified away by investing in both Guggenheim Macro and Columbia Thermostat 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 Columbia Thermostat 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 Columbia Thermostat Fund, you can compare the effects of market volatilities on Guggenheim Macro and Columbia Thermostat 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 Columbia Thermostat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Macro and Columbia Thermostat.
Diversification Opportunities for Guggenheim Macro and Columbia Thermostat
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guggenheim and Columbia is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Macro Opportunities and Columbia Thermostat Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Thermostat 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 Columbia Thermostat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Thermostat has no effect on the direction of Guggenheim Macro i.e., Guggenheim Macro and Columbia Thermostat go up and down completely randomly.
Pair Corralation between Guggenheim Macro and Columbia Thermostat
Assuming the 90 days horizon Guggenheim Macro is expected to generate 6.07 times less return on investment than Columbia Thermostat. But when comparing it to its historical volatility, Guggenheim Macro Opportunities is 3.71 times less risky than Columbia Thermostat. It trades about 0.24 of its potential returns per unit of risk. Columbia Thermostat Fund is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,646 in Columbia Thermostat Fund on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Columbia Thermostat Fund or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guggenheim Macro Opportunities vs. Columbia Thermostat Fund
Performance |
| Timeline |
| Guggenheim Macro Opp |
| Columbia Thermostat |
Guggenheim Macro and Columbia Thermostat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Macro and Columbia Thermostat
The main advantage of trading using opposite Guggenheim Macro and Columbia Thermostat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Macro position performs unexpectedly, Columbia Thermostat 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 Columbia Thermostat will offset losses from the drop in Columbia Thermostat's long position.| Guggenheim Macro vs. Guggenheim Total Return | Guggenheim Macro vs. Guggenheim Floating Rate | Guggenheim Macro vs. Pimco Incme Fund | Guggenheim Macro vs. Calamos Market Neutral |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |