Correlation Between Invesco Municipal and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal 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 Invesco Municipal and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Municipal Income and Guggenheim Managed Futures, you can compare the effects of market volatilities on Invesco Municipal 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 Invesco Municipal with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Guggenheim Managed.
Diversification Opportunities for Invesco Municipal and Guggenheim Managed
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and Guggenheim is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Income and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Invesco Municipal 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 Invesco Municipal Income 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 Invesco Municipal i.e., Invesco Municipal and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Invesco Municipal and Guggenheim Managed
Assuming the 90 days horizon Invesco Municipal is expected to generate 2.31 times less return on investment than Guggenheim Managed. But when comparing it to its historical volatility, Invesco Municipal Income is 1.68 times less risky than Guggenheim Managed. It trades about 0.01 of its potential returns per unit of risk. Guggenheim Managed Futures is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,881 in Guggenheim Managed Futures on December 4, 2024 and sell it today you would earn a total of 80.00 from holding Guggenheim Managed Futures or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Invesco Municipal Income vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Invesco Municipal Income |
| Guggenheim Managed |
Invesco Municipal and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Guggenheim Managed
The main advantage of trading using opposite Invesco Municipal and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal 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.| Invesco Municipal vs. Vanguard Total Stock | Invesco Municipal vs. Vanguard 500 Index | Invesco Municipal vs. Vanguard Total Stock | Invesco Municipal vs. Vanguard Total Stock |
| Guggenheim Managed vs. Blackrock Large Cap | Guggenheim Managed vs. Vest Large Cap | Guggenheim Managed vs. Calvert Large Cap | Guggenheim Managed vs. John Hancock Variable |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |