Correlation Between Guggenheim Managed and Pioneer Global

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

Diversification Opportunities for Guggenheim Managed and Pioneer Global

0.06

Correlation Coefficient

Guggenheim Managed  Pioneer Global

Significant diversification

The 3 months correlation between Guggenheim and Pioneer is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Pioneer Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Global Susta 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 Pioneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Global Susta has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Pioneer Global go up and down completely randomly.

Pair Corralation between Guggenheim Managed and Pioneer Global

Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Pioneer Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guggenheim Managed Futures is 1.05 times less risky than Pioneer Global. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Pioneer Global Sustainable is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,187  in Pioneer Global Sustainable on October 9, 2024 and sell it today you would lose (49.00) from holding Pioneer Global Sustainable or give up 4.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.39%
Values	Daily Returns

Guggenheim Managed Futures  vs.  Pioneer Global Sustainable

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.

Pioneer Global Susta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pioneer Global Sustainable has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Guggenheim Managed and Pioneer Global

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

The idea behind Guggenheim Managed Futures and Pioneer Global Sustainable 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.