Correlation Between Guggenheim Managed and Northeast Investors
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Northeast 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 Northeast 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 Northeast Investors Trust, you can compare the effects of market volatilities on Guggenheim Managed and Northeast 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 Northeast Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Northeast Investors.
Diversification Opportunities for Guggenheim Managed and Northeast Investors
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Northeast is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Northeast Investors Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northeast Investors Trust 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 Northeast Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northeast Investors Trust has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Northeast Investors go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Northeast Investors
Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Northeast Investors. In addition to that, Guggenheim Managed is 3.09 times more volatile than Northeast Investors Trust. It trades about -0.11 of its total potential returns per unit of risk. Northeast Investors Trust is currently generating about 0.07 per unit of volatility. If you would invest 366.00 in Northeast Investors Trust on October 21, 2024 and sell it today you would earn a total of 1.00 from holding Northeast Investors Trust or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Northeast Investors Trust
Performance |
| Timeline |
| Guggenheim Managed |
| Northeast Investors Trust |
Guggenheim Managed and Northeast Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Northeast Investors
The main advantage of trading using opposite Guggenheim Managed and Northeast Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Northeast 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 Northeast Investors will offset losses from the drop in Northeast Investors' long position.| Guggenheim Managed vs. Legg Mason Global | Guggenheim Managed vs. Mirova Global Green | Guggenheim Managed vs. Aqr Global Macro | Guggenheim Managed vs. Asg Global Alternatives |
| Northeast Investors vs. Touchstone Ultra Short | Northeast Investors vs. Kinetics Small Cap | Northeast Investors vs. Guggenheim Managed Futures | Northeast Investors vs. Invesco Steelpath Mlp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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