Correlation Between Intermediate Bond and Guggenheim Total
Can any of the company-specific risk be diversified away by investing in both Intermediate Bond and Guggenheim Total 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 Intermediate Bond and Guggenheim Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Bond Fund and Guggenheim Total Return, you can compare the effects of market volatilities on Intermediate Bond and Guggenheim Total 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 Intermediate Bond with a short position of Guggenheim Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Bond and Guggenheim Total.
Diversification Opportunities for Intermediate Bond and Guggenheim Total
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intermediate and Guggenheim is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Bond Fund and Guggenheim Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Total Return and Intermediate Bond 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 Intermediate Bond Fund are associated (or correlated) with Guggenheim Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Total Return has no effect on the direction of Intermediate Bond i.e., Intermediate Bond and Guggenheim Total go up and down completely randomly.
Pair Corralation between Intermediate Bond and Guggenheim Total
Assuming the 90 days horizon Intermediate Bond Fund is expected to generate 0.76 times more return on investment than Guggenheim Total. However, Intermediate Bond Fund is 1.32 times less risky than Guggenheim Total. It trades about 0.07 of its potential returns per unit of risk. Guggenheim Total Return is currently generating about 0.02 per unit of risk. If you would invest 1,265 in Intermediate Bond Fund on September 12, 2025 and sell it today you would earn a total of 8.00 from holding Intermediate Bond Fund or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Bond Fund vs. Guggenheim Total Return
Performance |
| Timeline |
| Intermediate Bond |
| Guggenheim Total Return |
Intermediate Bond and Guggenheim Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Bond and Guggenheim Total
The main advantage of trading using opposite Intermediate Bond and Guggenheim Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Bond position performs unexpectedly, Guggenheim Total 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 Total will offset losses from the drop in Guggenheim Total's long position.| Intermediate Bond vs. John Hancock Bond | Intermediate Bond vs. John Hancock Bond | Intermediate Bond vs. John Hancock Bond | Intermediate Bond vs. Prudential Total Return |
| Guggenheim Total vs. Franklin Dynatech Fund | Guggenheim Total vs. Harbor Capital Appreciation | Guggenheim Total vs. Mfs Institutional International | Guggenheim Total vs. Metropolitan West Total |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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