Correlation Between Guggenheim Managed and Alpskotak India

Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Alpskotak India 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 Alpskotak India 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 Alpskotak India Growth, you can compare the effects of market volatilities on Guggenheim Managed and Alpskotak India 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 Alpskotak India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Alpskotak India.

Diversification Opportunities for Guggenheim Managed and Alpskotak India

0.09

Correlation Coefficient

Guggenheim Managed  Alpskotak India

Significant diversification

The 3 months correlation between Guggenheim and Alpskotak is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Alpskotak India Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpskotak India Growth 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 Alpskotak India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpskotak India Growth has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Alpskotak India go up and down completely randomly.

Pair Corralation between Guggenheim Managed and Alpskotak India

Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 0.34 times more return on investment than Alpskotak India. However, Guggenheim Managed Futures is 2.93 times less risky than Alpskotak India. It trades about -0.12 of its potential returns per unit of risk. Alpskotak India Growth is currently generating about -0.28 per unit of risk. If you would invest  2,124  in Guggenheim Managed Futures on October 10, 2024 and sell it today you would lose (62.00) from holding Guggenheim Managed Futures or give up 2.92% of portfolio value over 90 days.

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

Guggenheim Managed Futures  vs.  Alpskotak India Growth

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.

Alpskotak India Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpskotak India Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Guggenheim Managed and Alpskotak India

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

The idea behind Guggenheim Managed Futures and Alpskotak India Growth 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.