Correlation Between Forum Real and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Forum Real and Guggenheim Managed 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 Forum Real and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Real Estate and Guggenheim Managed Futures, you can compare the effects of market volatilities on Forum Real and Guggenheim Managed 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 Forum Real with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Real and Guggenheim Managed.
Diversification Opportunities for Forum Real and Guggenheim Managed
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Forum and Guggenheim is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Forum Real Estate and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Forum Real 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 Forum Real Estate are associated (or correlated) with Guggenheim Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Managed has no effect on the direction of Forum Real i.e., Forum Real and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Forum Real and Guggenheim Managed
Assuming the 90 days horizon Forum Real is expected to generate 1.05 times less return on investment than Guggenheim Managed. But when comparing it to its historical volatility, Forum Real Estate is 6.71 times less risky than Guggenheim Managed. It trades about 0.68 of its potential returns per unit of risk. Guggenheim Managed Futures is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,959 in Guggenheim Managed Futures on May 29, 2025 and sell it today you would earn a total of 57.00 from holding Guggenheim Managed Futures or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forum Real Estate vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Forum Real Estate |
| Guggenheim Managed |
Forum Real and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Real and Guggenheim Managed
The main advantage of trading using opposite Forum Real and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Real position performs unexpectedly, Guggenheim Managed 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 Managed will offset losses from the drop in Guggenheim Managed's long position.| Forum Real vs. Pace Smallmedium Value | Forum Real vs. Perkins Small Cap | Forum Real vs. Fpa Queens Road | Forum Real vs. Boston Partners Small |
| Guggenheim Managed vs. Transamerica High Yield | Guggenheim Managed vs. Pioneer High Yield | Guggenheim Managed vs. Strategic Advisers Income | Guggenheim Managed vs. Blackrock High Yield |
Check out your portfolio center.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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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