Correlation Between NYSE Composite and Guggenheim Macro
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Guggenheim Macro 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 NYSE Composite and Guggenheim Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on NYSE Composite and Guggenheim Macro 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 NYSE Composite with a short position of Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Guggenheim Macro.
Diversification Opportunities for NYSE Composite and Guggenheim Macro
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Guggenheim is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Guggenheim Macro Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Macro Opp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Guggenheim Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Macro Opp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Guggenheim Macro go up and down completely randomly.
Pair Corralation between NYSE Composite and Guggenheim Macro
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Guggenheim Macro. In addition to that, NYSE Composite is 5.13 times more volatile than Guggenheim Macro Opportunities. It trades about -0.05 of its total potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about 0.28 per unit of volatility. If you would invest 2,461 in Guggenheim Macro Opportunities on December 1, 2024 and sell it today you would earn a total of 17.00 from holding Guggenheim Macro Opportunities or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Guggenheim Macro Opportunities
Performance |
| Timeline |
NYSE Composite and Guggenheim Macro Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Guggenheim Macro Opportunities
Pair trading matchups for Guggenheim Macro
Pair Trading with NYSE Composite and Guggenheim Macro
The main advantage of trading using opposite NYSE Composite and Guggenheim Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Guggenheim Macro 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 Macro will offset losses from the drop in Guggenheim Macro's long position.| NYSE Composite vs. Intuitive Surgical | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Idaho Strategic Resources | NYSE Composite vs. Femasys |
| Guggenheim Macro vs. Guggenheim Total Return | Guggenheim Macro vs. Guggenheim Floating Rate | Guggenheim Macro vs. Guggenheim Macro Opportunities | Guggenheim Macro vs. Guggenheim Macro Opportunities |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |