Correlation Between Guggenheim Limited and Voya Securitized

Can any of the company-specific risk be diversified away by investing in both Guggenheim Limited and Voya Securitized 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 Limited and Voya Securitized into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guggenheim Limited Duration and Voya Securitized Credit, you can compare the effects of market volatilities on Guggenheim Limited and Voya Securitized 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 Limited with a short position of Voya Securitized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Limited and Voya Securitized.

Diversification Opportunities for Guggenheim Limited and Voya Securitized

-0.41

Correlation Coefficient

Guggenheim Limited  Voya Securitized

Very good diversification

The 3 months correlation between Guggenheim and Voya is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Limited Duration and Voya Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Securitized Credit and Guggenheim Limited 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 Limited Duration are associated (or correlated) with Voya Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Securitized Credit has no effect on the direction of Guggenheim Limited i.e., Guggenheim Limited and Voya Securitized go up and down completely randomly.

Pair Corralation between Guggenheim Limited and Voya Securitized

If you would invest  2,442  in Guggenheim Limited Duration on September 12, 2024 and sell it today you would earn a total of  6.00  from holding Guggenheim Limited Duration or generate 0.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Guggenheim Limited Duration  vs.  Voya Securitized Credit

Guggenheim Limited

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Limited Duration are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Guggenheim Limited is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Securitized Credit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Securitized Credit has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Voya Securitized is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guggenheim Limited and Voya Securitized

The main advantage of trading using opposite Guggenheim Limited and Voya Securitized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Limited position performs unexpectedly, Voya Securitized 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 Voya Securitized will offset losses from the drop in Voya Securitized's long position.

The idea behind Guggenheim Limited Duration and Voya Securitized Credit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.