Correlation Between Guggenheim Managed and Conservative Balanced

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

Diversification Opportunities for Guggenheim Managed and Conservative Balanced

0.71

Correlation Coefficient

Guggenheim Managed  Conservative Balanced

Poor diversification

The 3 months correlation between Guggenheim and Conservative is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Conservative Balanced Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conservative Balanced 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 Conservative Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conservative Balanced has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Conservative Balanced go up and down completely randomly.

Pair Corralation between Guggenheim Managed and Conservative Balanced

Assuming the 90 days horizon Guggenheim Managed is expected to generate 3.17 times less return on investment than Conservative Balanced. In addition to that, Guggenheim Managed is 1.15 times more volatile than Conservative Balanced Allocation. It trades about 0.07 of its total potential returns per unit of risk. Conservative Balanced Allocation is currently generating about 0.27 per unit of volatility. If you would invest  1,116  in Conservative Balanced Allocation on May 5, 2025 and sell it today you would earn a total of  64.00  from holding Conservative Balanced Allocation or generate 5.73% return on investment over 90 days.

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

Guggenheim Managed Futures  vs.  Conservative Balanced Allocati

Guggenheim Managed

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Managed Futures are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. 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.

Conservative Balanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Conservative Balanced Allocation are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Conservative Balanced 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 Conservative Balanced

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

The idea behind Guggenheim Managed Futures and Conservative Balanced Allocation 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.