Correlation Between Guggenheim Styleplus and American Beacon
Can any of the company-specific risk be diversified away by investing in both Guggenheim Styleplus and American Beacon 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 Styleplus and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Styleplus and American Beacon Ark, you can compare the effects of market volatilities on Guggenheim Styleplus and American Beacon 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 Styleplus with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Styleplus and American Beacon.
Diversification Opportunities for Guggenheim Styleplus and American Beacon
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guggenheim and American is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Styleplus and American Beacon Ark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Ark and Guggenheim Styleplus 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 Styleplus are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Ark has no effect on the direction of Guggenheim Styleplus i.e., Guggenheim Styleplus and American Beacon go up and down completely randomly.
Pair Corralation between Guggenheim Styleplus and American Beacon
Assuming the 90 days horizon Guggenheim Styleplus is expected to under-perform the American Beacon. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guggenheim Styleplus is 1.85 times less risky than American Beacon. The mutual fund trades about -0.07 of its potential returns per unit of risk. The American Beacon Ark is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,258 in American Beacon Ark on October 9, 2025 and sell it today you would lose (19.00) from holding American Beacon Ark or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Styleplus vs. American Beacon Ark
Performance |
| Timeline |
| Guggenheim Styleplus |
| American Beacon Ark |
Guggenheim Styleplus and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Styleplus and American Beacon
The main advantage of trading using opposite Guggenheim Styleplus and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Styleplus position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Guggenheim Styleplus vs. Crm Small Cap | Guggenheim Styleplus vs. Nuveen Small Cap | Guggenheim Styleplus vs. T Rowe Price | Guggenheim Styleplus vs. Mairs Power Small |
| American Beacon vs. Summit Global Investments | American Beacon vs. Dunham Monthly Distribution | American Beacon vs. Dreyfus Opportunistic Small | American Beacon vs. American Beacon Sga |
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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