Correlation Between Sa Real and Guggenheim Risk
Can any of the company-specific risk be diversified away by investing in both Sa Real and Guggenheim Risk 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 Sa Real and Guggenheim Risk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Real Estate and Guggenheim Risk Managed, you can compare the effects of market volatilities on Sa Real and Guggenheim Risk 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 Sa Real with a short position of Guggenheim Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Real and Guggenheim Risk.
Diversification Opportunities for Sa Real and Guggenheim Risk
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SAREX and Guggenheim is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sa Real Estate and Guggenheim Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Risk Managed and Sa Real 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 Sa Real Estate are associated (or correlated) with Guggenheim Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Risk Managed has no effect on the direction of Sa Real i.e., Sa Real and Guggenheim Risk go up and down completely randomly.
Pair Corralation between Sa Real and Guggenheim Risk
Assuming the 90 days horizon Sa Real Estate is expected to generate 1.13 times more return on investment than Guggenheim Risk. However, Sa Real is 1.13 times more volatile than Guggenheim Risk Managed. It trades about -0.07 of its potential returns per unit of risk. Guggenheim Risk Managed is currently generating about -0.1 per unit of risk. If you would invest 1,229 in Sa Real Estate on September 12, 2024 and sell it today you would lose (14.00) from holding Sa Real Estate or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sa Real Estate vs. Guggenheim Risk Managed
Performance |
| Timeline |
| Sa Real Estate |
| Guggenheim Risk Managed |
Sa Real and Guggenheim Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Real and Guggenheim Risk
The main advantage of trading using opposite Sa Real and Guggenheim Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Real position performs unexpectedly, Guggenheim Risk 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 Risk will offset losses from the drop in Guggenheim Risk's long position.| Sa Real vs. Guggenheim Risk Managed | Sa Real vs. HUMANA INC | Sa Real vs. Barloworld Ltd ADR | Sa Real vs. Morningstar Unconstrained Allocation |
| Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Lazard Global Listed |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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