Correlation Between Guggenheim Managed and High Yield
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and High Yield 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 High Yield 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 High Yield Fund, you can compare the effects of market volatilities on Guggenheim Managed and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and High Yield.
Diversification Opportunities for Guggenheim Managed and High Yield
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and High is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Fund 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Fund has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and High Yield go up and down completely randomly.
Pair Corralation between Guggenheim Managed and High Yield
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 3.88 times more return on investment than High Yield. However, Guggenheim Managed is 3.88 times more volatile than High Yield Fund. It trades about 0.29 of its potential returns per unit of risk. High Yield Fund is currently generating about 0.22 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. High Yield Fund
Performance |
| Timeline |
| Guggenheim Managed |
| High Yield Fund |
Guggenheim Managed and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and High Yield
The main advantage of trading using opposite Guggenheim Managed and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield'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 |
| High Yield vs. Global Fixed Income | High Yield vs. Global Fixed Income | High Yield vs. Global Fixed Income | High Yield vs. Global E Portfolio |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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