Correlation Between Guggenheim Managed and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Inflation, you can compare the effects of market volatilities on Guggenheim Managed and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Simt Multi-asset.
Diversification Opportunities for Guggenheim Managed and Simt Multi-asset
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and Simt is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Simt Multi-asset
Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Simt Multi-asset. In addition to that, Guggenheim Managed is 3.7 times more volatile than Simt Multi Asset Inflation. It trades about -0.07 of its total potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.52 per unit of volatility. If you would invest 768.00 in Simt Multi Asset Inflation on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Simt Multi Asset Inflation or generate 1.95% 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. Simt Multi Asset Inflation
Performance |
| Timeline |
| Guggenheim Managed |
| Simt Multi Asset |
Guggenheim Managed and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Simt Multi-asset
The main advantage of trading using opposite Guggenheim Managed and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Guggenheim Managed vs. Lord Abbett Government | Guggenheim Managed vs. Franklin Adjustable Government | Guggenheim Managed vs. Virtus Seix Government | Guggenheim Managed vs. Dreyfus Government Cash |
| Simt Multi-asset vs. Calvert Developed Market | Simt Multi-asset vs. Aqr Sustainable Long Short | Simt Multi-asset vs. Aqr Equity Market | Simt Multi-asset vs. Mid Cap 15x Strategy |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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