Correlation Between Guggenheim Managed and Global E
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Global E 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 Global E 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 Global E Portfolio, you can compare the effects of market volatilities on Guggenheim Managed and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Global E.
Diversification Opportunities for Guggenheim Managed and Global E
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Global is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Global E Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Portfolio 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Portfolio has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Global E go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Global E
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 1.0 times more return on investment than Global E. However, Guggenheim Managed Futures is 1.0 times less risky than Global E. It trades about 0.29 of its potential returns per unit of risk. Global E Portfolio is currently generating about 0.15 per unit of risk. If you would invest 2,070 in Guggenheim Managed Futures on September 14, 2024 and sell it today you would earn a total of 66.00 from holding Guggenheim Managed Futures or generate 3.19% 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. Global E Portfolio
Performance |
| Timeline |
| Guggenheim Managed |
| Global E Portfolio |
Guggenheim Managed and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Global E
The main advantage of trading using opposite Guggenheim Managed and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E'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 |
| Global E vs. Global Advantage Portfolio | Global E vs. Ridgeworth Innovative Growth | Global E vs. Transamerica Capital Growth | Global E vs. Internet Ultrasector Profund |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |