Correlation Between Guggenheim Managed and Short Duration
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Short Duration 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 Managed and Short Duration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Managed Futures and Short Duration Inflation, you can compare the effects of market volatilities on Guggenheim Managed and Short Duration 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 Managed with a short position of Short Duration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Short Duration.
Diversification Opportunities for Guggenheim Managed and Short Duration
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Short is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Short Duration Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Duration Inflation and Guggenheim Managed 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 Managed Futures are associated (or correlated) with Short Duration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Duration Inflation has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Short Duration go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Short Duration
Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Short Duration. In addition to that, Guggenheim Managed is 5.21 times more volatile than Short Duration Inflation. It trades about -0.05 of its total potential returns per unit of risk. Short Duration Inflation is currently generating about 0.17 per unit of volatility. If you would invest 990.00 in Short Duration Inflation on December 2, 2024 and sell it today you would earn a total of 62.00 from holding Short Duration Inflation or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Short Duration Inflation
Performance |
| Timeline |
| Guggenheim Managed |
| Short Duration Inflation |
Guggenheim Managed and Short Duration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Short Duration
The main advantage of trading using opposite Guggenheim Managed and Short Duration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Short Duration 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 Short Duration will offset losses from the drop in Short Duration's long position.| Guggenheim Managed vs. Eaton Vance Worldwide | Guggenheim Managed vs. Tekla Healthcare Investors | Guggenheim Managed vs. Health Care Fund | Guggenheim Managed vs. Baillie Gifford Health |
| Short Duration vs. Asg Managed Futures | Short Duration vs. Nationwide Inflation Protected Securities | Short Duration vs. Ab Bond Inflation | Short Duration vs. Western Asset Inflation |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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