Correlation Between Guggenheim Taxable and BLNG

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

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

Diversification Opportunities for Guggenheim Taxable and BLNG

-0.85

Correlation Coefficient

Guggenheim Taxable  BLNG

Pay attention - limited upside

The 3 months correlation between Guggenheim and BLNG is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Taxable Municipal and BLNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLNG and Guggenheim Taxable 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 Taxable Municipal are associated (or correlated) with BLNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLNG has no effect on the direction of Guggenheim Taxable i.e., Guggenheim Taxable and BLNG go up and down completely randomly.

Pair Corralation between Guggenheim Taxable and BLNG

If you would invest  1,024  in BLNG on October 24, 2024 and sell it today you would earn a total of  0.00  from holding BLNG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	1.69%
Values	Daily Returns

Guggenheim Taxable Municipal  vs.  BLNG

Guggenheim Taxable

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guggenheim Taxable Municipal has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

BLNG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BLNG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BLNG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Guggenheim Taxable and BLNG

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

The idea behind Guggenheim Taxable Municipal and BLNG 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.