Correlation Between Guggenheim High and Managed Account
Can any of the company-specific risk be diversified away by investing in both Guggenheim High and Managed Account 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 High and Managed Account into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim High Yield and Managed Account Series, you can compare the effects of market volatilities on Guggenheim High and Managed Account 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 High with a short position of Managed Account. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim High and Managed Account.
Diversification Opportunities for Guggenheim High and Managed Account
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guggenheim and Managed is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim High Yield and Managed Account Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Managed Account Series and Guggenheim 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 Guggenheim High Yield are associated (or correlated) with Managed Account. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Managed Account Series has no effect on the direction of Guggenheim High i.e., Guggenheim High and Managed Account go up and down completely randomly.
Pair Corralation between Guggenheim High and Managed Account
Assuming the 90 days horizon Guggenheim High Yield is expected to generate 0.85 times more return on investment than Managed Account. However, Guggenheim High Yield is 1.18 times less risky than Managed Account. It trades about 0.14 of its potential returns per unit of risk. Managed Account Series is currently generating about 0.06 per unit of risk. If you would invest 812.00 in Guggenheim High Yield on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Guggenheim High Yield or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim High Yield vs. Managed Account Series
Performance |
| Timeline |
| Guggenheim High Yield |
| Managed Account Series |
Guggenheim High and Managed Account Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim High and Managed Account
The main advantage of trading using opposite Guggenheim High and Managed Account positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim High position performs unexpectedly, Managed Account 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 Managed Account will offset losses from the drop in Managed Account's long position.| Guggenheim High vs. Small Pany Growth | Guggenheim High vs. Smallcap Fund Fka | Guggenheim High vs. Ab Small Cap | Guggenheim High vs. Glg Intl Small |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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