Correlation Between Guggenheim Managed and Guggenheim Multi-hedge
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Guggenheim Multi-hedge 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 Guggenheim Multi-hedge 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 Guggenheim Multi Hedge Strategies, you can compare the effects of market volatilities on Guggenheim Managed and Guggenheim Multi-hedge 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 Guggenheim Multi-hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Guggenheim Multi-hedge.
Diversification Opportunities for Guggenheim Managed and Guggenheim Multi-hedge
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guggenheim and Guggenheim is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Guggenheim Multi Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Multi Hedge 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 Guggenheim Multi-hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Multi Hedge has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Guggenheim Multi-hedge go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Guggenheim Multi-hedge
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 1.48 times more return on investment than Guggenheim Multi-hedge. However, Guggenheim Managed is 1.48 times more volatile than Guggenheim Multi Hedge Strategies. It trades about 0.01 of its potential returns per unit of risk. Guggenheim Multi Hedge Strategies is currently generating about 0.0 per unit of risk. If you would invest 1,968 in Guggenheim Managed Futures on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Guggenheim Managed Futures or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Guggenheim Multi Hedge Strateg
Performance |
| Timeline |
| Guggenheim Managed |
| Guggenheim Multi Hedge |
Guggenheim Managed and Guggenheim Multi-hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Guggenheim Multi-hedge
The main advantage of trading using opposite Guggenheim Managed and Guggenheim Multi-hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Guggenheim Multi-hedge 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 Guggenheim Multi-hedge will offset losses from the drop in Guggenheim Multi-hedge'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 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |