Correlation Between Guggenheim Managed and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Credit Suisse 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 Credit Suisse 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 Credit Suisse Multialternative, you can compare the effects of market volatilities on Guggenheim Managed and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Credit Suisse.
Diversification Opportunities for Guggenheim Managed and Credit Suisse
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guggenheim and Credit is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Credit Suisse go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Credit Suisse
Assuming the 90 days horizon Guggenheim Managed is expected to generate 1.76 times less return on investment than Credit Suisse. In addition to that, Guggenheim Managed is 1.87 times more volatile than Credit Suisse Multialternative. It trades about 0.03 of its total potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.09 per unit of volatility. If you would invest 803.00 in Credit Suisse Multialternative on November 1, 2024 and sell it today you would earn a total of 19.00 from holding Credit Suisse Multialternative or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Guggenheim Managed |
| Credit Suisse Multia |
Guggenheim Managed and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Credit Suisse
The main advantage of trading using opposite Guggenheim Managed and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Guggenheim Managed vs. Global Technology Portfolio | Guggenheim Managed vs. Science Technology Fund | Guggenheim Managed vs. Towpath Technology | Guggenheim Managed vs. Hennessy Technology Fund |
| Credit Suisse vs. Asg Managed Futures | Credit Suisse vs. Nationwide Inflation Protected Securities | Credit Suisse vs. Western Asset Inflation | Credit Suisse vs. Altegris Futures Evolution |
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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