Correlation Between Wasatch Frontier and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Wasatch Frontier and Guggenheim Managed 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 Wasatch Frontier and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch Frontier Emerging and Guggenheim Managed Futures, you can compare the effects of market volatilities on Wasatch Frontier and Guggenheim Managed 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 Wasatch Frontier with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Frontier and Guggenheim Managed.
Diversification Opportunities for Wasatch Frontier and Guggenheim Managed
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wasatch and Guggenheim is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Frontier Emerging and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Wasatch Frontier 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 Wasatch Frontier Emerging are associated (or correlated) with Guggenheim Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Managed has no effect on the direction of Wasatch Frontier i.e., Wasatch Frontier and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Wasatch Frontier and Guggenheim Managed
Assuming the 90 days horizon Wasatch Frontier Emerging is expected to under-perform the Guggenheim Managed. In addition to that, Wasatch Frontier is 1.22 times more volatile than Guggenheim Managed Futures. It trades about -0.04 of its total potential returns per unit of risk. Guggenheim Managed Futures is currently generating about 0.11 per unit of volatility. If you would invest 1,969 in Guggenheim Managed Futures on October 26, 2024 and sell it today you would earn a total of 72.00 from holding Guggenheim Managed Futures or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Frontier Emerging vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Wasatch Frontier Emerging |
| Guggenheim Managed |
Wasatch Frontier and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Frontier and Guggenheim Managed
The main advantage of trading using opposite Wasatch Frontier and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Frontier position performs unexpectedly, Guggenheim Managed 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 Managed will offset losses from the drop in Guggenheim Managed's long position.| Wasatch Frontier vs. Guggenheim Managed Futures | Wasatch Frontier vs. Inflation Protected Bond Fund | Wasatch Frontier vs. Asg Managed Futures | Wasatch Frontier vs. Altegris Futures Evolution |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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