Correlation Between Guggenheim Managed and Leuthold Select
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Leuthold Select 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 Leuthold Select 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 Leuthold Select Industries, you can compare the effects of market volatilities on Guggenheim Managed and Leuthold Select 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 Leuthold Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Leuthold Select.
Diversification Opportunities for Guggenheim Managed and Leuthold Select
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guggenheim and Leuthold is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Leuthold Select Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Select Indu 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 Leuthold Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Select Indu has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Leuthold Select go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Leuthold Select
Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Leuthold Select. In addition to that, Guggenheim Managed is 1.07 times more volatile than Leuthold Select Industries. It trades about -0.02 of its total potential returns per unit of risk. Leuthold Select Industries is currently generating about 0.29 per unit of volatility. If you would invest 3,347 in Leuthold Select Industries on November 3, 2024 and sell it today you would earn a total of 133.00 from holding Leuthold Select Industries or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Leuthold Select Industries
Performance |
| Timeline |
| Guggenheim Managed |
| Leuthold Select Indu |
Guggenheim Managed and Leuthold Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Leuthold Select
The main advantage of trading using opposite Guggenheim Managed and Leuthold Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Leuthold Select 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 Leuthold Select will offset losses from the drop in Leuthold Select's long position.| Guggenheim Managed vs. Federated Emerging Market | Guggenheim Managed vs. Eagle Mlp Strategy | Guggenheim Managed vs. Kinetics Market Opportunities | Guggenheim Managed vs. Ashmore Emerging Markets |
| Leuthold Select vs. Blackrock Global Longshort | Leuthold Select vs. Transam Short Term Bond | Leuthold Select vs. Leader Short Term Bond | Leuthold Select vs. Virtus Multi Sector Short |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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