Correlation Between Guggenheim Managed and Fidelity Small
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Fidelity Small 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 Fidelity Small 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 Fidelity Small Cap, you can compare the effects of market volatilities on Guggenheim Managed and Fidelity Small 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 Fidelity Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Fidelity Small.
Diversification Opportunities for Guggenheim Managed and Fidelity Small
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guggenheim and Fidelity is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Fidelity Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Small Cap 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 Fidelity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Small Cap has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Fidelity Small go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Fidelity Small
Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Fidelity Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guggenheim Managed Futures is 1.91 times less risky than Fidelity Small. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Fidelity Small Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,893 in Fidelity Small Cap on September 14, 2024 and sell it today you would earn a total of 102.00 from holding Fidelity Small Cap or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Fidelity Small Cap
Performance |
| Timeline |
| Guggenheim Managed |
| Fidelity Small Cap |
Guggenheim Managed and Fidelity Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Fidelity Small
The main advantage of trading using opposite Guggenheim Managed and Fidelity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Fidelity Small 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 Fidelity Small will offset losses from the drop in Fidelity Small's long position.| Guggenheim Managed vs. Ambrus Core Bond | Guggenheim Managed vs. Franklin High Yield | Guggenheim Managed vs. The National Tax Free | Guggenheim Managed vs. Pace High Yield |
| Fidelity Small vs. Guidepath Managed Futures | Fidelity Small vs. Goldman Sachs Inflation | Fidelity Small vs. Lord Abbett Inflation | Fidelity Small vs. Guggenheim 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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