Correlation Between Guggenheim Macro and Jpmorgan Strategic
Can any of the company-specific risk be diversified away by investing in both Guggenheim Macro and Jpmorgan Strategic 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 Jpmorgan Strategic 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 Jpmorgan Strategic Income, you can compare the effects of market volatilities on Guggenheim Macro and Jpmorgan Strategic 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 Jpmorgan Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Macro and Jpmorgan Strategic.
Diversification Opportunities for Guggenheim Macro and Jpmorgan Strategic
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guggenheim and Jpmorgan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Macro Opportunities and Jpmorgan Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Strategic Income 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 Jpmorgan Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Strategic Income has no effect on the direction of Guggenheim Macro i.e., Guggenheim Macro and Jpmorgan Strategic go up and down completely randomly.
Pair Corralation between Guggenheim Macro and Jpmorgan Strategic
Assuming the 90 days horizon Guggenheim Macro Opportunities is expected to generate 3.17 times more return on investment than Jpmorgan Strategic. However, Guggenheim Macro is 3.17 times more volatile than Jpmorgan Strategic Income. It trades about 0.16 of its potential returns per unit of risk. Jpmorgan Strategic Income is currently generating about 0.31 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Macro Opportunities vs. Jpmorgan Strategic Income
Performance |
| Timeline |
| Guggenheim Macro Opp |
| Jpmorgan Strategic Income |
Guggenheim Macro and Jpmorgan Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Macro and Jpmorgan Strategic
The main advantage of trading using opposite Guggenheim Macro and Jpmorgan Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Macro position performs unexpectedly, Jpmorgan Strategic 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 Jpmorgan Strategic will offset losses from the drop in Jpmorgan Strategic'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 |
| Jpmorgan Strategic vs. Jpmorgan Income Builder | Jpmorgan Strategic vs. Jpmorgan E Bond | Jpmorgan Strategic vs. Jpmorgan High Yield | Jpmorgan Strategic vs. Pimco Unconstrained Bond |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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