Correlation Between Siit High and Guggenheim High
Can any of the company-specific risk be diversified away by investing in both Siit High and Guggenheim High 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 Siit High and Guggenheim High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Guggenheim High Yield, you can compare the effects of market volatilities on Siit High and Guggenheim High 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 Siit High with a short position of Guggenheim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Guggenheim High.
Diversification Opportunities for Siit High and Guggenheim High
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Guggenheim is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Guggenheim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim High Yield and Siit High 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 Siit High Yield are associated (or correlated) with Guggenheim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim High Yield has no effect on the direction of Siit High i.e., Siit High and Guggenheim High go up and down completely randomly.
Pair Corralation between Siit High and Guggenheim High
Assuming the 90 days horizon Siit High Yield is expected to generate 0.97 times more return on investment than Guggenheim High. However, Siit High Yield is 1.03 times less risky than Guggenheim High. It trades about 0.27 of its potential returns per unit of risk. Guggenheim High Yield is currently generating about 0.23 per unit of risk. If you would invest 711.00 in Siit High Yield on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Siit High Yield or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Guggenheim High Yield
Performance |
| Timeline |
| Siit High Yield |
| Guggenheim High Yield |
Siit High and Guggenheim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Guggenheim High
The main advantage of trading using opposite Siit High and Guggenheim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Guggenheim High 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 High will offset losses from the drop in Guggenheim High's long position.| Siit High vs. Artisan High Income | Siit High vs. Sit Emerging Markets | Siit High vs. Sit International Equity | Siit High vs. Stet Intermediate Term |
| Guggenheim High vs. Qs Large Cap | Guggenheim High vs. Guidemark Large Cap | Guggenheim High vs. T Rowe Price | Guggenheim High vs. T Rowe Price |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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