Correlation Between ArcBest Corp and Guggenheim Macro
Can any of the company-specific risk be diversified away by investing in both ArcBest Corp and Guggenheim Macro 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 ArcBest Corp and Guggenheim Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ArcBest Corp and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on ArcBest Corp and Guggenheim Macro 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 ArcBest Corp with a short position of Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcBest Corp and Guggenheim Macro.
Diversification Opportunities for ArcBest Corp and Guggenheim Macro
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ArcBest and Guggenheim is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ArcBest Corp and Guggenheim Macro Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Macro Opp and ArcBest Corp 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 ArcBest Corp are associated (or correlated) with Guggenheim Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Macro Opp has no effect on the direction of ArcBest Corp i.e., ArcBest Corp and Guggenheim Macro go up and down completely randomly.
Pair Corralation between ArcBest Corp and Guggenheim Macro
Given the investment horizon of 90 days ArcBest Corp is expected to generate 20.01 times more return on investment than Guggenheim Macro. However, ArcBest Corp is 20.01 times more volatile than Guggenheim Macro Opportunities. It trades about 0.02 of its potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about -0.09 per unit of risk. If you would invest 13,619 in ArcBest Corp on January 26, 2024 and sell it today you would earn a total of 81.00 from holding ArcBest Corp or generate 0.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ArcBest Corp vs. Guggenheim Macro Opportunities
Performance |
Timeline |
ArcBest Corp |
Guggenheim Macro Opp |
ArcBest Corp and Guggenheim Macro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ArcBest Corp and Guggenheim Macro
The main advantage of trading using opposite ArcBest Corp and Guggenheim Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcBest Corp position performs unexpectedly, Guggenheim Macro 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 Macro will offset losses from the drop in Guggenheim Macro's long position.ArcBest Corp vs. TFI International | ArcBest Corp vs. Morningstar Unconstrained Allocation | ArcBest Corp vs. SPACE |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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