Correlation Between Blackstone Gso and Guggenheim Taxable

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

By analyzing existing cross correlation between Blackstone Gso Strategic and Guggenheim Taxable Municipal, you can compare the effects of market volatilities on Blackstone Gso and Guggenheim Taxable 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 Blackstone Gso with a short position of Guggenheim Taxable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Guggenheim Taxable.

Diversification Opportunities for Blackstone Gso and Guggenheim Taxable

0.37

Correlation Coefficient

Blackstone Gso  Guggenheim Taxable

Weak diversification

The 3 months correlation between Blackstone and Guggenheim is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Strategic and Guggenheim Taxable Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Taxable and Blackstone Gso 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 Blackstone Gso Strategic are associated (or correlated) with Guggenheim Taxable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Taxable has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Guggenheim Taxable go up and down completely randomly.

Pair Corralation between Blackstone Gso and Guggenheim Taxable

Considering the 90-day investment horizon Blackstone Gso Strategic is expected to under-perform the Guggenheim Taxable. But the fund apears to be less risky and, when comparing its historical volatility, Blackstone Gso Strategic is 1.55 times less risky than Guggenheim Taxable. The fund trades about 0.0 of its potential returns per unit of risk. The Guggenheim Taxable Municipal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,495  in Guggenheim Taxable Municipal on December 31, 2024 and sell it today you would earn a total of  48.00  from holding Guggenheim Taxable Municipal or generate 3.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackstone Gso Strategic  vs.  Guggenheim Taxable Municipal

Blackstone Gso Strategic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Gso Strategic has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Guggenheim Taxable

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Taxable Municipal are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Guggenheim Taxable is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackstone Gso and Guggenheim Taxable

The main advantage of trading using opposite Blackstone Gso and Guggenheim Taxable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Guggenheim Taxable 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 Taxable will offset losses from the drop in Guggenheim Taxable's long position.

The idea behind Blackstone Gso Strategic and Guggenheim Taxable Municipal 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 Global Correlations module to find global opportunities by holding instruments from different markets.