Correlation Between Guggenheim Floating and Pear Tree
Can any of the company-specific risk be diversified away by investing in both Guggenheim Floating and Pear Tree 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 Floating and Pear Tree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Floating Rate and Pear Tree Polaris, you can compare the effects of market volatilities on Guggenheim Floating and Pear Tree 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 Floating with a short position of Pear Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Floating and Pear Tree.
Diversification Opportunities for Guggenheim Floating and Pear Tree
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guggenheim and Pear is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Floating Rate and Pear Tree Polaris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pear Tree Polaris and Guggenheim Floating 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 Floating Rate are associated (or correlated) with Pear Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pear Tree Polaris has no effect on the direction of Guggenheim Floating i.e., Guggenheim Floating and Pear Tree go up and down completely randomly.
Pair Corralation between Guggenheim Floating and Pear Tree
Assuming the 90 days horizon Guggenheim Floating Rate is not expected to generate positive returns. However, Guggenheim Floating Rate is 13.14 times less risky than Pear Tree. It waists most of its returns potential to compensate for thr risk taken. Pear Tree is generating about 0.45 per unit of risk. If you would invest 1,773 in Pear Tree Polaris on October 9, 2025 and sell it today you would earn a total of 78.00 from holding Pear Tree Polaris or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Floating Rate vs. Pear Tree Polaris
Performance |
| Timeline |
| Guggenheim Floating Rate |
| Pear Tree Polaris |
Guggenheim Floating and Pear Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Floating and Pear Tree
The main advantage of trading using opposite Guggenheim Floating and Pear Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Floating position performs unexpectedly, Pear Tree 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 Pear Tree will offset losses from the drop in Pear Tree's long position.| Guggenheim Floating vs. Guggenheim Floating Rate | Guggenheim Floating vs. Guggenheim Floating Rate | Guggenheim Floating vs. Guggenheim Floating Rate | Guggenheim Floating vs. Catalystprinceton Floating Rate |
| Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Brown Advisory | Pear Tree vs. Blackrock Commodity Strategies | Pear Tree vs. Brown Advisory |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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