Correlation Between Cref Inflation and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Cref Inflation 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 Cref Inflation and Guggenheim Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Guggenheim Managed Futures, you can compare the effects of market volatilities on Cref Inflation 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 Cref Inflation with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Guggenheim Managed.
Diversification Opportunities for Cref Inflation and Guggenheim Managed
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cref and Guggenheim is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Cref Inflation 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 Cref Inflation Linked Bond 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 Cref Inflation i.e., Cref Inflation and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Cref Inflation and Guggenheim Managed
Assuming the 90 days trading horizon Cref Inflation is expected to generate 1.18 times less return on investment than Guggenheim Managed. But when comparing it to its historical volatility, Cref Inflation Linked Bond is 2.11 times less risky than Guggenheim Managed. It trades about 0.17 of its potential returns per unit of risk. Guggenheim Managed Futures is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,936 in Guggenheim Managed Futures on April 22, 2025 and sell it today you would earn a total of 48.00 from holding Guggenheim Managed Futures or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Cref Inflation Linked |
| Guggenheim Managed |
Cref Inflation and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation and Guggenheim Managed
The main advantage of trading using opposite Cref Inflation and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation 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.| Cref Inflation vs. Aig Government Money | Cref Inflation vs. Franklin Government Securities | Cref Inflation vs. Alpine Ultra Short | Cref Inflation vs. Ab Municipal Bond |
| Guggenheim Managed vs. Pace High Yield | Guggenheim Managed vs. Morningstar Aggressive Growth | Guggenheim Managed vs. Americafirst Monthly Risk On | Guggenheim Managed vs. Ab High Income |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |