Correlation Between Gabelli Gold and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Guggenheim Managed 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 Gabelli Gold and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Gold Fund and Guggenheim Managed Futures, you can compare the effects of market volatilities on Gabelli Gold and Guggenheim Managed 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 Gabelli Gold with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Guggenheim Managed.
Diversification Opportunities for Gabelli Gold and Guggenheim Managed
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gabelli and Guggenheim is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Gabelli Gold 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 Gabelli Gold Fund are associated (or correlated) with Guggenheim Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Managed has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Gabelli Gold and Guggenheim Managed
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 2.04 times more return on investment than Guggenheim Managed. However, Gabelli Gold is 2.04 times more volatile than Guggenheim Managed Futures. It trades about 0.35 of its potential returns per unit of risk. Guggenheim Managed Futures is currently generating about -0.14 per unit of risk. If you would invest 2,039 in Gabelli Gold Fund on October 25, 2024 and sell it today you would earn a total of 189.00 from holding Gabelli Gold Fund or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Gabelli Gold |
| Guggenheim Managed |
Gabelli Gold and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Guggenheim Managed
The main advantage of trading using opposite Gabelli Gold and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Guggenheim Managed 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 Managed will offset losses from the drop in Guggenheim Managed's long position.| Gabelli Gold vs. Barings Emerging Markets | Gabelli Gold vs. Black Oak Emerging | Gabelli Gold vs. Investec Emerging Markets | Gabelli Gold vs. Embark Commodity Strategy |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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