Correlation Between Guggenheim Macro and Jacob Micro
Can any of the company-specific risk be diversified away by investing in both Guggenheim Macro and Jacob Micro 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 Macro and Jacob Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Macro Opportunities and Jacob Micro Cap, you can compare the effects of market volatilities on Guggenheim Macro and Jacob Micro 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 Macro with a short position of Jacob Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Macro and Jacob Micro.
Diversification Opportunities for Guggenheim Macro and Jacob Micro
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guggenheim and Jacob is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Macro Opportunities and Jacob Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Micro Cap and Guggenheim Macro 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 Macro Opportunities are associated (or correlated) with Jacob Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Micro Cap has no effect on the direction of Guggenheim Macro i.e., Guggenheim Macro and Jacob Micro go up and down completely randomly.
Pair Corralation between Guggenheim Macro and Jacob Micro
Assuming the 90 days horizon Guggenheim Macro Opportunities is expected to generate 0.11 times more return on investment than Jacob Micro. However, Guggenheim Macro Opportunities is 8.82 times less risky than Jacob Micro. It trades about 0.19 of its potential returns per unit of risk. Jacob Micro Cap is currently generating about 0.0 per unit of risk. If you would invest 2,108 in Guggenheim Macro Opportunities on March 29, 2025 and sell it today you would earn a total of 375.00 from holding Guggenheim Macro Opportunities or generate 17.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Guggenheim Macro Opportunities vs. Jacob Micro Cap
Performance |
| Timeline |
| Guggenheim Macro Opp |
| Jacob Micro Cap |
Guggenheim Macro and Jacob Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Macro and Jacob Micro
The main advantage of trading using opposite Guggenheim Macro and Jacob Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Macro position performs unexpectedly, Jacob Micro 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 Jacob Micro will offset losses from the drop in Jacob Micro's long position.| Guggenheim Macro vs. Vanguard Information Technology | Guggenheim Macro vs. Allianzgi Technology Fund | Guggenheim Macro vs. Goldman Sachs Technology | Guggenheim Macro vs. Hennessy Technology Fund |
| Jacob Micro vs. Small Pany Growth | Jacob Micro vs. Jacob Internet Fund | Jacob Micro vs. Jacob Small Cap | Jacob Micro vs. Amer Beacon Ark |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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