Correlation Between Guggenheim Managed and Pimco Energy
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Pimco Energy 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 Pimco Energy 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 Pimco Energy Tactical, you can compare the effects of market volatilities on Guggenheim Managed and Pimco Energy 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 Pimco Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Pimco Energy.
Diversification Opportunities for Guggenheim Managed and Pimco Energy
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guggenheim and Pimco is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Pimco Energy Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Energy Tactical 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 Pimco Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Energy Tactical has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Pimco Energy go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Pimco Energy
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 0.33 times more return on investment than Pimco Energy. However, Guggenheim Managed Futures is 3.07 times less risky than Pimco Energy. It trades about 0.18 of its potential returns per unit of risk. Pimco Energy Tactical is currently generating about -0.02 per unit of risk. If you would invest 2,019 in Guggenheim Managed Futures on October 10, 2024 and sell it today you would earn a total of 43.00 from holding Guggenheim Managed Futures or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Pimco Energy Tactical
Performance |
| Timeline |
| Guggenheim Managed |
| Pimco Energy Tactical |
Guggenheim Managed and Pimco Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Pimco Energy
The main advantage of trading using opposite Guggenheim Managed and Pimco Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Pimco Energy 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 Pimco Energy will offset losses from the drop in Pimco Energy's long position.| Guggenheim Managed vs. Franklin Government Money | Guggenheim Managed vs. Ab Impact Municipal | Guggenheim Managed vs. Gamco Global Telecommunications | Guggenheim Managed vs. Dws Government Money |
| Pimco Energy vs. Versatile Bond Portfolio | Pimco Energy vs. Commodities Strategy Fund | Pimco Energy vs. Semiconductor Ultrasector Profund | Pimco Energy vs. T Rowe Price |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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