Correlation Between Pender Real and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Pender Real 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 Pender Real and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and Guggenheim Managed Futures, you can compare the effects of market volatilities on Pender Real 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 Pender Real with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Guggenheim Managed.
Diversification Opportunities for Pender Real and Guggenheim Managed
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pender and Guggenheim is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Pender Real 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 Pender Real Estate 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 Pender Real i.e., Pender Real and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Pender Real and Guggenheim Managed
Assuming the 90 days horizon Pender Real Estate is expected to under-perform the Guggenheim Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pender Real Estate is 3.89 times less risky than Guggenheim Managed. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Guggenheim Managed Futures is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Guggenheim Managed Futures on September 5, 2024 and sell it today you would earn a total of 45.00 from holding Guggenheim Managed Futures or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pender Real Estate vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Pender Real Estate |
| Guggenheim Managed |
Pender Real and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Guggenheim Managed
The main advantage of trading using opposite Pender Real and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real 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.| Pender Real vs. Vanguard Total Stock | Pender Real vs. Vanguard 500 Index | Pender Real vs. Vanguard Total Stock | Pender Real vs. Vanguard Total Stock |
| Guggenheim Managed vs. Vanguard Reit Index | Guggenheim Managed vs. Prudential Real Estate | Guggenheim Managed vs. Forum Real Estate | Guggenheim Managed vs. Pender Real Estate |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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