Correlation Between Guggenheim Managed and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Hussman Strategic 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 Hussman Strategic 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 Hussman Strategic Growth, you can compare the effects of market volatilities on Guggenheim Managed and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Hussman Strategic.
Diversification Opportunities for Guggenheim Managed and Hussman Strategic
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guggenheim and Hussman is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Hussman Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic Growth 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic Growth has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Hussman Strategic go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Hussman Strategic
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 1.28 times more return on investment than Hussman Strategic. However, Guggenheim Managed is 1.28 times more volatile than Hussman Strategic Growth. It trades about -0.01 of its potential returns per unit of risk. Hussman Strategic Growth is currently generating about -0.05 per unit of risk. If you would invest 2,086 in Guggenheim Managed Futures on August 31, 2024 and sell it today you would lose (52.00) from holding Guggenheim Managed Futures or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Hussman Strategic Growth
Performance |
| Timeline |
| Guggenheim Managed |
| Hussman Strategic Growth |
Guggenheim Managed and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Hussman Strategic
The main advantage of trading using opposite Guggenheim Managed and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's 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 |
| Hussman Strategic vs. Virtus Convertible | Hussman Strategic vs. Columbia Vertible Securities | Hussman Strategic vs. Calamos Dynamic Convertible | Hussman Strategic vs. Allianzgi Convertible Income |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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