Correlation Between Aquila Three and Guggenheim Managed

Can any of the company-specific risk be diversified away by investing in both Aquila Three 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 Aquila Three and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aquila Three Peaks and Guggenheim Managed Futures, you can compare the effects of market volatilities on Aquila Three 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 Aquila Three with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquila Three and Guggenheim Managed.

Diversification Opportunities for Aquila Three and Guggenheim Managed

0.79

Correlation Coefficient

Aquila Three  Guggenheim Managed

Poor diversification

The 3 months correlation between Aquila and Guggenheim is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aquila Three Peaks and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Aquila Three 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 Aquila Three Peaks 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 Aquila Three i.e., Aquila Three and Guggenheim Managed go up and down completely randomly.

Pair Corralation between Aquila Three and Guggenheim Managed

If you would invest  2,885  in Aquila Three Peaks on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Aquila Three Peaks or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.56%
Values	Daily Returns

Aquila Three Peaks  vs.  Guggenheim Managed Futures

Aquila Three Peaks

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Aquila Three Peaks has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak fundamental indicators, Aquila Three showed solid returns over the last few months and may actually be approaching a breakup point.

Guggenheim Managed

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Managed Futures are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Guggenheim Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aquila Three and Guggenheim Managed

The main advantage of trading using opposite Aquila Three and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquila Three 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.

The idea behind Aquila Three Peaks and Guggenheim Managed Futures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.