Correlation Between Guggenheim Long and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Guggenheim Long and Angel Oak 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 Guggenheim Long and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Long Short and Angel Oak Ultrashort, you can compare the effects of market volatilities on Guggenheim Long and Angel Oak 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 Guggenheim Long with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Long and Angel Oak.
Diversification Opportunities for Guggenheim Long and Angel Oak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUGGENHEIM and Angel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Long Short and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort and Guggenheim Long 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 Guggenheim Long Short are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Guggenheim Long i.e., Guggenheim Long and Angel Oak go up and down completely randomly.
Pair Corralation between Guggenheim Long and Angel Oak
Assuming the 90 days horizon Guggenheim Long Short is expected to generate 5.4 times more return on investment than Angel Oak. However, Guggenheim Long is 5.4 times more volatile than Angel Oak Ultrashort. It trades about 0.06 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.23 per unit of risk. If you would invest 1,841 in Guggenheim Long Short on August 28, 2024 and sell it today you would earn a total of 352.00 from holding Guggenheim Long Short or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Long Short vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Guggenheim Long Short |
| Angel Oak Ultrashort |
Guggenheim Long and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Long and Angel Oak
The main advantage of trading using opposite Guggenheim Long and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Long position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Guggenheim Long vs. Nationwide Small Cap | Guggenheim Long vs. Kinetics Small Cap | Guggenheim Long vs. The Hartford Small | Guggenheim Long vs. Ancorathelen Small Mid Cap |
| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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