Correlation Between Guggenheim High and Six Circles
Can any of the company-specific risk be diversified away by investing in both Guggenheim High and Six Circles 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 Six Circles 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 Six Circles Credit, you can compare the effects of market volatilities on Guggenheim High and Six Circles 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 Six Circles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim High and Six Circles.
Diversification Opportunities for Guggenheim High and Six Circles
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GUGGENHEIM and Six is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim High Yield and Six Circles Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Circles Credit 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 Six Circles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Circles Credit has no effect on the direction of Guggenheim High i.e., Guggenheim High and Six Circles go up and down completely randomly.
Pair Corralation between Guggenheim High and Six Circles
Assuming the 90 days horizon Guggenheim High Yield is expected to generate 0.79 times more return on investment than Six Circles. However, Guggenheim High Yield is 1.27 times less risky than Six Circles. It trades about 0.14 of its potential returns per unit of risk. Six Circles Credit is currently generating about 0.1 per unit of risk. If you would invest 999.00 in Guggenheim High Yield on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Guggenheim High Yield or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim High Yield vs. Six Circles Credit
Performance |
| Timeline |
| Guggenheim High Yield |
| Six Circles Credit |
Guggenheim High and Six Circles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim High and Six Circles
The main advantage of trading using opposite Guggenheim High and Six Circles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim High position performs unexpectedly, Six Circles 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 Six Circles will offset losses from the drop in Six Circles' long position.| Guggenheim High vs. Vanguard High Yield Corporate | Guggenheim High vs. Vanguard High Yield Porate | Guggenheim High vs. Blackrock Hi Yld | Guggenheim High vs. Blackrock High Yield |
| Six Circles vs. Virtus High Yield | Six Circles vs. Pace High Yield | Six Circles vs. Guggenheim High Yield | Six Circles vs. Dunham High Yield |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |