Correlation Between Guggenheim Energy and Summit Global
Can any of the company-specific risk be diversified away by investing in both Guggenheim Energy and Summit Global 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 Energy and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Energy Income and Summit Global Investments, you can compare the effects of market volatilities on Guggenheim Energy and Summit Global 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 Energy with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Energy and Summit Global.
Diversification Opportunities for Guggenheim Energy and Summit Global
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Summit is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Energy Income and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Guggenheim Energy 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 Energy Income are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Guggenheim Energy i.e., Guggenheim Energy and Summit Global go up and down completely randomly.
Pair Corralation between Guggenheim Energy and Summit Global
Assuming the 90 days horizon Guggenheim Energy is expected to generate 2.55 times less return on investment than Summit Global. But when comparing it to its historical volatility, Guggenheim Energy Income is 2.27 times less risky than Summit Global. It trades about 0.07 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,235 in Summit Global Investments on August 29, 2024 and sell it today you would earn a total of 809.00 from holding Summit Global Investments or generate 25.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Guggenheim Energy Income vs. Summit Global Investments
Performance |
| Timeline |
| Guggenheim Energy Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Summit Global Investments |
Guggenheim Energy and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Energy and Summit Global
The main advantage of trading using opposite Guggenheim Energy and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Energy position performs unexpectedly, Summit Global 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 Summit Global will offset losses from the drop in Summit Global's long position.| Guggenheim Energy vs. Allianzgi Technology Fund | Guggenheim Energy vs. Towpath Technology | Guggenheim Energy vs. Janus Global Technology | Guggenheim Energy vs. Global Technology Portfolio |
| Summit Global vs. Summit Global Investments | Summit Global vs. Summit Global Investments | Summit Global vs. Summit Global Investments |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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