Correlation Between Inverse Nasdaq-100 and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Inverse Nasdaq-100 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 Inverse Nasdaq-100 and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inverse Nasdaq 100 Strategy and Guggenheim Managed Futures, you can compare the effects of market volatilities on Inverse Nasdaq-100 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 Inverse Nasdaq-100 with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inverse Nasdaq-100 and Guggenheim Managed.
Diversification Opportunities for Inverse Nasdaq-100 and Guggenheim Managed
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inverse and Guggenheim is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Inverse Nasdaq 100 Strategy and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Inverse Nasdaq-100 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 Inverse Nasdaq 100 Strategy 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 Inverse Nasdaq-100 i.e., Inverse Nasdaq-100 and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Inverse Nasdaq-100 and Guggenheim Managed
Assuming the 90 days horizon Inverse Nasdaq 100 Strategy is expected to generate 1.93 times more return on investment than Guggenheim Managed. However, Inverse Nasdaq-100 is 1.93 times more volatile than Guggenheim Managed Futures. It trades about 0.03 of its potential returns per unit of risk. Guggenheim Managed Futures is currently generating about -0.12 per unit of risk. If you would invest 1,072 in Inverse Nasdaq 100 Strategy on October 30, 2024 and sell it today you would earn a total of 5.00 from holding Inverse Nasdaq 100 Strategy or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inverse Nasdaq 100 Strategy vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Inverse Nasdaq 100 |
| Guggenheim Managed |
Inverse Nasdaq-100 and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inverse Nasdaq-100 and Guggenheim Managed
The main advantage of trading using opposite Inverse Nasdaq-100 and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inverse Nasdaq-100 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.| Inverse Nasdaq-100 vs. Aqr Long Short Equity | Inverse Nasdaq-100 vs. Goldman Sachs Equity | Inverse Nasdaq-100 vs. Dreyfusstandish Global Fixed | Inverse Nasdaq-100 vs. Siit Equity Factor |
| Guggenheim Managed vs. Payden Government Fund | Guggenheim Managed vs. Dreyfus Government Cash | Guggenheim Managed vs. Aig Government Money | Guggenheim Managed vs. Dws 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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