Correlation Between Guggenheim Managed and Gqg Partners

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

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

Diversification Opportunities for Guggenheim Managed and Gqg Partners

0.29

Correlation Coefficient

Guggenheim Managed  Gqg Partners

Modest diversification

The 3 months correlation between Guggenheim and Gqg is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Gqg Partners Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gqg Partners Global and Guggenheim Managed 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 Managed Futures are associated (or correlated) with Gqg Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gqg Partners Global has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Gqg Partners go up and down completely randomly.

Pair Corralation between Guggenheim Managed and Gqg Partners

Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 1.02 times more return on investment than Gqg Partners. However, Guggenheim Managed is 1.02 times more volatile than Gqg Partners Global. It trades about -0.02 of its potential returns per unit of risk. Gqg Partners Global is currently generating about -0.16 per unit of risk. If you would invest  2,152  in Guggenheim Managed Futures on September 14, 2024 and sell it today you would lose (16.00) from holding Guggenheim Managed Futures or give up 0.74% of portfolio value over 90 days.

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

Guggenheim Managed Futures  vs.  Gqg Partners Global

Guggenheim Managed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guggenheim Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. 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.

Gqg Partners Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gqg Partners Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Gqg Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guggenheim Managed and Gqg Partners

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

The idea behind Guggenheim Managed Futures and Gqg Partners Global 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.