Correlation Between Valic Company and Guggenheim High
Can any of the company-specific risk be diversified away by investing in both Valic Company 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 Valic Company and Guggenheim High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Guggenheim High Yield, you can compare the effects of market volatilities on Valic Company 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 Valic Company with a short position of Guggenheim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Guggenheim High.
Diversification Opportunities for Valic Company and Guggenheim High
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valic and Guggenheim is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I 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 Valic Company 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 Valic Company I 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 Valic Company i.e., Valic Company and Guggenheim High go up and down completely randomly.
Pair Corralation between Valic Company and Guggenheim High
Assuming the 90 days horizon Valic Company I is expected to under-perform the Guggenheim High. In addition to that, Valic Company is 8.13 times more volatile than Guggenheim High Yield. It trades about -0.33 of its total potential returns per unit of risk. Guggenheim High Yield is currently generating about -0.33 per unit of volatility. If you would invest 816.00 in Guggenheim High Yield on October 15, 2024 and sell it today you would lose (8.00) from holding Guggenheim High Yield or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Guggenheim High Yield
Performance |
| Timeline |
| Valic Company I |
| Guggenheim High Yield |
Valic Company and Guggenheim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Guggenheim High
The main advantage of trading using opposite Valic Company and Guggenheim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company 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.| Valic Company vs. American Century Etf | Valic Company vs. Northern Small Cap | Valic Company vs. Ultrasmall Cap Profund Ultrasmall Cap | Valic Company vs. Small Cap Value Fund |
| Guggenheim High vs. Transamerica Financial Life | Guggenheim High vs. Icon Financial Fund | Guggenheim High vs. Rmb Mendon Financial | Guggenheim High vs. Fidelity Advisor Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |