Correlation Between Guggenheim Managed and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Fidelity Freedom 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 Freedom 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 Freedom Blend, you can compare the effects of market volatilities on Guggenheim Managed and Fidelity Freedom 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 Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Fidelity Freedom.
Diversification Opportunities for Guggenheim Managed and Fidelity Freedom
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Fidelity is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend 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 Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Fidelity Freedom
Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Fidelity Freedom. In addition to that, Guggenheim Managed is 2.24 times more volatile than Fidelity Freedom Blend. It trades about -0.04 of its total potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.09 per unit of volatility. If you would invest 957.00 in Fidelity Freedom Blend on November 7, 2024 and sell it today you would earn a total of 59.00 from holding Fidelity Freedom Blend or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Fidelity Freedom Blend
Performance |
| Timeline |
| Guggenheim Managed |
| Fidelity Freedom Blend |
Guggenheim Managed and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Fidelity Freedom
The main advantage of trading using opposite Guggenheim Managed and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom's long position.| Guggenheim Managed vs. Tiaa Cref High Yield | Guggenheim Managed vs. Dunham High Yield | Guggenheim Managed vs. Artisan High Income | Guggenheim Managed vs. Strategic Advisers Income |
| Fidelity Freedom vs. Fidelity Freedom 2015 | Fidelity Freedom vs. Fidelity Puritan Fund | Fidelity Freedom vs. Fidelity Puritan Fund | Fidelity Freedom vs. Fidelity Pennsylvania Municipal |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |