Correlation Between Guggenheim Managed and First Investors
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and First Investors 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 First Investors 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 First Investors Select, you can compare the effects of market volatilities on Guggenheim Managed and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and First Investors.
Diversification Opportunities for Guggenheim Managed and First Investors
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and First is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and First Investors Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Select 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Select has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and First Investors go up and down completely randomly.
Pair Corralation between Guggenheim Managed and First Investors
Assuming the 90 days horizon Guggenheim Managed is expected to generate 7.49 times less return on investment than First Investors. But when comparing it to its historical volatility, Guggenheim Managed Futures is 1.16 times less risky than First Investors. It trades about 0.02 of its potential returns per unit of risk. First Investors Select is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 861.00 in First Investors Select on September 13, 2024 and sell it today you would earn a total of 479.00 from holding First Investors Select or generate 55.63% 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. First Investors Select
Performance |
| Timeline |
| Guggenheim Managed |
| First Investors Select |
Guggenheim Managed and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and First Investors
The main advantage of trading using opposite Guggenheim Managed and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Guggenheim Managed vs. Morningstar Aggressive Growth | Guggenheim Managed vs. Alliancebernstein Global High | Guggenheim Managed vs. Artisan High Income | Guggenheim Managed vs. Us High Relative |
| First Investors vs. Guggenheim Managed Futures | First Investors vs. Goldman Sachs Inflation | First Investors vs. Short Duration Inflation | First Investors vs. Schwab Treasury 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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