Correlation Between Guggenheim Macro and Guggenheim Total
Can any of the company-specific risk be diversified away by investing in both Guggenheim Macro and Guggenheim Total 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 Guggenheim Total 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 Guggenheim Total Return, you can compare the effects of market volatilities on Guggenheim Macro and Guggenheim Total 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 Guggenheim Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Macro and Guggenheim Total.
Diversification Opportunities for Guggenheim Macro and Guggenheim Total
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and GUGGENHEIM is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Macro Opportunities and Guggenheim Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Total Return 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 Guggenheim Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Total Return has no effect on the direction of Guggenheim Macro i.e., Guggenheim Macro and Guggenheim Total go up and down completely randomly.
Pair Corralation between Guggenheim Macro and Guggenheim Total
Assuming the 90 days horizon Guggenheim Macro Opportunities is expected to generate 0.5 times more return on investment than Guggenheim Total. However, Guggenheim Macro Opportunities is 2.02 times less risky than Guggenheim Total. It trades about 0.16 of its potential returns per unit of risk. Guggenheim Total Return is currently generating about 0.05 per unit of risk. If you would invest 2,120 in Guggenheim Macro Opportunities on August 29, 2024 and sell it today you would earn a total of 361.00 from holding Guggenheim Macro Opportunities or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Macro Opportunities vs. Guggenheim Total Return
Performance |
| Timeline |
| Guggenheim Macro Opp |
| Guggenheim Total Return |
Guggenheim Macro and Guggenheim Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Macro and Guggenheim Total
The main advantage of trading using opposite Guggenheim Macro and Guggenheim Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Macro position performs unexpectedly, Guggenheim Total 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 Total will offset losses from the drop in Guggenheim Total's long position.| Guggenheim Macro vs. HUMANA INC | Guggenheim Macro vs. Aquagold International | Guggenheim Macro vs. Barloworld Ltd ADR | Guggenheim Macro vs. Morningstar Unconstrained Allocation |
| Guggenheim Total vs. Guggenheim Macro Opportunities | Guggenheim Total vs. Guggenheim Total Return | Guggenheim Total vs. Guggenheim Total Return | Guggenheim Total vs. Guggenheim Total Return |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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