Correlation Between Performance Trust and Guggenheim Macro
Can any of the company-specific risk be diversified away by investing in both Performance Trust 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 Performance Trust and Guggenheim Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Trust Strategic and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on Performance Trust 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 Performance Trust with a short position of Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Guggenheim Macro.
Diversification Opportunities for Performance Trust and Guggenheim Macro
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Performance and Guggenheim is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Strategic 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 Performance Trust 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 Performance Trust Strategic 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 Performance Trust i.e., Performance Trust and Guggenheim Macro go up and down completely randomly.
Pair Corralation between Performance Trust and Guggenheim Macro
Assuming the 90 days horizon Performance Trust is expected to generate 1.0 times less return on investment than Guggenheim Macro. In addition to that, Performance Trust is 2.5 times more volatile than Guggenheim Macro Opportunities. It trades about 0.1 of its total potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about 0.25 per unit of volatility. If you would invest 2,349 in Guggenheim Macro Opportunities on September 3, 2024 and sell it today you would earn a total of 131.00 from holding Guggenheim Macro Opportunities or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Trust Strategic vs. Guggenheim Macro Opportunities
Performance |
| Timeline |
| Performance Trust |
| Guggenheim Macro Opp |
Performance Trust and Guggenheim Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Trust and Guggenheim Macro
The main advantage of trading using opposite Performance Trust and Guggenheim Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Trust 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.| Performance Trust vs. Metropolitan West Total | Performance Trust vs. Metropolitan West Total | Performance Trust vs. Pimco Total Return | Performance Trust vs. Total Return Fund |
| Guggenheim Macro vs. Performance Trust Strategic | Guggenheim Macro vs. Guggenheim Total Return | Guggenheim Macro vs. Guggenheim Limited Duration | 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 Stocks Directory module to find actively traded stocks across global markets.
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