Correlation Between Catalyst/smh High and Guggenheim Small
Can any of the company-specific risk be diversified away by investing in both Catalyst/smh High and Guggenheim Small 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 Catalyst/smh High and Guggenheim Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystsmh High Income and Guggenheim Small Cap, you can compare the effects of market volatilities on Catalyst/smh High and Guggenheim Small 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 Catalyst/smh High with a short position of Guggenheim Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/smh High and Guggenheim Small.
Diversification Opportunities for Catalyst/smh High and Guggenheim Small
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst/smh and Guggenheim is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Catalystsmh High Income and Guggenheim Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Small Cap and Catalyst/smh High 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 Catalystsmh High Income are associated (or correlated) with Guggenheim Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Small Cap has no effect on the direction of Catalyst/smh High i.e., Catalyst/smh High and Guggenheim Small go up and down completely randomly.
Pair Corralation between Catalyst/smh High and Guggenheim Small
If you would invest 1,574 in Guggenheim Small Cap on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Guggenheim Small Cap or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.5% |
| Values | Daily Returns |
Catalystsmh High Income vs. Guggenheim Small Cap
Performance |
| Timeline |
| Catalystsmh High Income |
| Guggenheim Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catalyst/smh High and Guggenheim Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/smh High and Guggenheim Small
The main advantage of trading using opposite Catalyst/smh High and Guggenheim Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/smh High position performs unexpectedly, Guggenheim Small 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 Small will offset losses from the drop in Guggenheim Small's long position.| Catalyst/smh High vs. Americafirst Large Cap | Catalyst/smh High vs. M Large Cap | Catalyst/smh High vs. Fisher Large Cap | Catalyst/smh High vs. Avantis Large Cap |
| Guggenheim Small vs. Ab High Income | Guggenheim Small vs. Catalystsmh High Income | Guggenheim Small vs. Virtus High Yield | Guggenheim Small vs. Needham Aggressive Growth |
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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