Correlation Between Guggenheim Styleplus and Astor Star
Can any of the company-specific risk be diversified away by investing in both Guggenheim Styleplus and Astor Star 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 Styleplus and Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Styleplus and Astor Star Fund, you can compare the effects of market volatilities on Guggenheim Styleplus and Astor Star 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 Styleplus with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Styleplus and Astor Star.
Diversification Opportunities for Guggenheim Styleplus and Astor Star
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guggenheim and Astor is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Styleplus and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund and Guggenheim Styleplus 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 Styleplus are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Guggenheim Styleplus i.e., Guggenheim Styleplus and Astor Star go up and down completely randomly.
Pair Corralation between Guggenheim Styleplus and Astor Star
Assuming the 90 days horizon Guggenheim Styleplus is expected to generate 0.89 times more return on investment than Astor Star. However, Guggenheim Styleplus is 1.13 times less risky than Astor Star. It trades about 0.3 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.05 per unit of risk. If you would invest 3,662 in Guggenheim Styleplus on October 22, 2024 and sell it today you would earn a total of 146.00 from holding Guggenheim Styleplus or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Styleplus vs. Astor Star Fund
Performance |
| Timeline |
| Guggenheim Styleplus |
| Astor Star Fund |
Guggenheim Styleplus and Astor Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Styleplus and Astor Star
The main advantage of trading using opposite Guggenheim Styleplus and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Styleplus position performs unexpectedly, Astor Star 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 Astor Star will offset losses from the drop in Astor Star's long position.| Guggenheim Styleplus vs. Nasdaq 100 Fund Class | Guggenheim Styleplus vs. Select Fund R | Guggenheim Styleplus vs. Select Fund C | Guggenheim Styleplus vs. Nasdaq 100 Fund Class |
| Astor Star vs. Astor Star Fund | Astor Star vs. Guggenheim Styleplus | Astor Star vs. Astor Longshort Fund | Astor Star vs. Gmo Strategic Opportunities |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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