Correlation Between Guggenheim World and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Guggenheim World and Angel Oak 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 World and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim World Equity and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Guggenheim World and Angel Oak 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 World with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim World and Angel Oak.
Diversification Opportunities for Guggenheim World and Angel Oak
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Angel is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim World Equity and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Guggenheim World 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 World Equity are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Multi has no effect on the direction of Guggenheim World i.e., Guggenheim World and Angel Oak go up and down completely randomly.
Pair Corralation between Guggenheim World and Angel Oak
Assuming the 90 days horizon Guggenheim World Equity is expected to generate 3.91 times more return on investment than Angel Oak. However, Guggenheim World is 3.91 times more volatile than Angel Oak Multi Strategy. It trades about 0.34 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.09 per unit of risk. If you would invest 1,718 in Guggenheim World Equity on September 4, 2024 and sell it today you would earn a total of 62.00 from holding Guggenheim World Equity or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim World Equity vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Guggenheim World Equity |
| Angel Oak Multi |
Guggenheim World and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim World and Angel Oak
The main advantage of trading using opposite Guggenheim World and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim World position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Guggenheim World vs. Angel Oak Multi Strategy | Guggenheim World vs. The Emerging Markets | Guggenheim World vs. Mondrian Emerging Markets | Guggenheim World vs. Black Oak Emerging |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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