Correlation Between Hussman Strategic and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Hussman Strategic 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 Hussman Strategic and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hussman Strategic Growth and Guggenheim Managed Futures, you can compare the effects of market volatilities on Hussman Strategic 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 Hussman Strategic with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hussman Strategic and Guggenheim Managed.
Diversification Opportunities for Hussman Strategic and Guggenheim Managed
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hussman and Guggenheim is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hussman Strategic Growth and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Hussman Strategic 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 Hussman Strategic Growth 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 Hussman Strategic i.e., Hussman Strategic and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Hussman Strategic and Guggenheim Managed
Assuming the 90 days horizon Hussman Strategic Growth is expected to under-perform the Guggenheim Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Hussman Strategic Growth is 1.28 times less risky than Guggenheim Managed. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Guggenheim Managed Futures is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,086 in Guggenheim Managed Futures on August 31, 2024 and sell it today you would lose (52.00) from holding Guggenheim Managed Futures or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hussman Strategic Growth vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Hussman Strategic Growth |
| Guggenheim Managed |
Hussman Strategic and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hussman Strategic and Guggenheim Managed
The main advantage of trading using opposite Hussman Strategic and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hussman Strategic 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.| Hussman Strategic vs. Virtus Convertible | Hussman Strategic vs. Columbia Vertible Securities | Hussman Strategic vs. Calamos Dynamic Convertible | Hussman Strategic vs. Allianzgi Convertible Income |
| Guggenheim Managed vs. Hussman Strategic Growth | Guggenheim Managed vs. The Arbitrage Fund | Guggenheim Managed vs. Guggenheim Multi Hedge Strategies | Guggenheim Managed vs. The Merger Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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