Correlation Between Guggenheim Styleplus and Guggenheim Macro

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

By analyzing existing cross correlation between Guggenheim Styleplus and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on Guggenheim Styleplus and Guggenheim Macro 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 Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Styleplus and Guggenheim Macro.

Diversification Opportunities for Guggenheim Styleplus and Guggenheim Macro

-0.41

Correlation Coefficient

Guggenheim Styleplus  Guggenheim Macro

Very good diversification

The 3 months correlation between Guggenheim and Guggenheim is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Styleplus and Guggenheim Macro Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Macro Opp 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 Guggenheim Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Macro Opp has no effect on the direction of Guggenheim Styleplus i.e., Guggenheim Styleplus and Guggenheim Macro go up and down completely randomly.

Pair Corralation between Guggenheim Styleplus and Guggenheim Macro

Assuming the 90 days horizon Guggenheim Styleplus is expected to under-perform the Guggenheim Macro. In addition to that, Guggenheim Styleplus is 12.05 times more volatile than Guggenheim Macro Opportunities. It trades about -0.2 of its total potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about -0.43 per unit of volatility. If you would invest  2,479  in Guggenheim Macro Opportunities on January 8, 2025 and sell it today you would lose (40.00) from holding Guggenheim Macro Opportunities or give up 1.61% of portfolio value over 90 days.

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

Guggenheim Styleplus   vs.  Guggenheim Macro Opportunities

Guggenheim Styleplus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guggenheim Styleplus 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 basic indicators remain fairly strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Guggenheim Macro Opp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guggenheim Macro Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Guggenheim Macro 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 Styleplus and Guggenheim Macro

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

The idea behind Guggenheim Styleplus and Guggenheim Macro Opportunities 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.