Correlation Between Pimco Trends and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Pimco Trends 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 Pimco Trends and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Trends Managed and Guggenheim Managed Futures, you can compare the effects of market volatilities on Pimco Trends 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 Pimco Trends with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Guggenheim Managed.
Diversification Opportunities for Pimco Trends and Guggenheim Managed
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Guggenheim is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Pimco Trends 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 Pimco Trends Managed 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 Pimco Trends i.e., Pimco Trends and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Pimco Trends and Guggenheim Managed
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Guggenheim Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Trends Managed is 1.25 times less risky than Guggenheim Managed. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Guggenheim Managed Futures is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,040 in Guggenheim Managed Futures on November 18, 2024 and sell it today you would lose (9.00) from holding Guggenheim Managed Futures or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Pimco Trends Managed |
| Guggenheim Managed |
Pimco Trends and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Guggenheim Managed
The main advantage of trading using opposite Pimco Trends and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends 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.| Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Aqr Managed Futures | Pimco Trends vs. iMGP DBi Managed |
| Guggenheim Managed vs. John Hancock Money | Guggenheim Managed vs. Edward Jones Money | Guggenheim Managed vs. Franklin Government Money | Guggenheim Managed vs. Prudential Government Money |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |