Correlation Between Guggenheim Styleplus and Sirius

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

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

Diversification Opportunities for Guggenheim Styleplus and Sirius

-0.4

Correlation Coefficient

Guggenheim Styleplus  Sirius

Very good diversification

The 3 months correlation between Guggenheim and Sirius is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Styleplus and Sirius XM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirius XM Holdings and Guggenheim Styleplus 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 Styleplus are associated (or correlated) with Sirius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirius XM Holdings has no effect on the direction of Guggenheim Styleplus i.e., Guggenheim Styleplus and Sirius go up and down completely randomly.

Pair Corralation between Guggenheim Styleplus and Sirius

Assuming the 90 days horizon Guggenheim Styleplus is expected to under-perform the Sirius. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guggenheim Styleplus is 1.05 times less risky than Sirius. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Sirius XM Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  9,015  in Sirius XM Holdings on September 24, 2024 and sell it today you would earn a total of  15.00  from holding Sirius XM Holdings or generate 0.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Guggenheim Styleplus   vs.  Sirius XM Holdings

Guggenheim Styleplus

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Styleplus are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Guggenheim Styleplus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sirius XM Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sirius XM Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sirius is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guggenheim Styleplus and Sirius

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

The idea behind Guggenheim Styleplus and Sirius XM Holdings 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.