Correlation Between Guggenheim Long and Mfs Utilities
Can any of the company-specific risk be diversified away by investing in both Guggenheim Long and Mfs Utilities 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 Mfs Utilities 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 Mfs Utilities Fund, you can compare the effects of market volatilities on Guggenheim Long and Mfs Utilities 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 Mfs Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Long and Mfs Utilities.
Diversification Opportunities for Guggenheim Long and Mfs Utilities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guggenheim and Mfs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Long Short and Mfs Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Utilities 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 Mfs Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Utilities has no effect on the direction of Guggenheim Long i.e., Guggenheim Long and Mfs Utilities go up and down completely randomly.
Pair Corralation between Guggenheim Long and Mfs Utilities
Assuming the 90 days horizon Guggenheim Long Short is expected to generate 0.58 times more return on investment than Mfs Utilities. However, Guggenheim Long Short is 1.74 times less risky than Mfs Utilities. It trades about 0.06 of its potential returns per unit of risk. Mfs Utilities Fund is currently generating about 0.02 per unit of risk. If you would invest 1,833 in Guggenheim Long Short on August 30, 2024 and sell it today you would earn a total of 360.00 from holding Guggenheim Long Short or generate 19.64% 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. Mfs Utilities Fund
Performance |
| Timeline |
| Guggenheim Long Short |
| Mfs Utilities |
Guggenheim Long and Mfs Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Long and Mfs Utilities
The main advantage of trading using opposite Guggenheim Long and Mfs Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Long position performs unexpectedly, Mfs Utilities 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 Mfs Utilities will offset losses from the drop in Mfs Utilities' long position.| Guggenheim Long vs. Blackrock Inflation Protected | Guggenheim Long vs. Guidepath Managed Futures | Guggenheim Long vs. Ab Bond Inflation | Guggenheim Long vs. Aqr Managed Futures |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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