Correlation Between Guggenheim Managed and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Absolute, you can compare the effects of market volatilities on Guggenheim Managed and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Goldman Sachs.
Diversification Opportunities for Guggenheim Managed and Goldman Sachs
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Goldman is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Goldman Sachs Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Absolute 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Absolute has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Goldman Sachs go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Goldman Sachs
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 1.43 times more return on investment than Goldman Sachs. However, Guggenheim Managed is 1.43 times more volatile than Goldman Sachs Absolute. It trades about 0.16 of its potential returns per unit of risk. Goldman Sachs Absolute is currently generating about 0.16 per unit of risk. If you would invest 1,996 in Guggenheim Managed Futures on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Guggenheim Managed Futures or generate 1.9% 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. Goldman Sachs Absolute
Performance |
| Timeline |
| Guggenheim Managed |
| Goldman Sachs Absolute |
Guggenheim Managed and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Goldman Sachs
The main advantage of trading using opposite Guggenheim Managed and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Guggenheim Managed vs. Hussman Strategic Growth | Guggenheim Managed vs. The Arbitrage Fund | Guggenheim Managed vs. Guggenheim Multi Hedge Strategies | Guggenheim Managed vs. The Merger Fund |
| Goldman Sachs vs. Jpmorgan Dynamic Small | Goldman Sachs vs. Guggenheim Managed Futures | Goldman Sachs vs. Diamond Hill Long Short | Goldman Sachs vs. Ivy Mid Cap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |