Correlation Between Coinbase Global and Guggenheim Municipal

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Coinbase Global and Guggenheim Municipal 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 Coinbase Global and Guggenheim Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coinbase Global and Guggenheim Municipal Income, you can compare the effects of market volatilities on Coinbase Global and Guggenheim Municipal 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 Coinbase Global with a short position of Guggenheim Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coinbase Global and Guggenheim Municipal.

Diversification Opportunities for Coinbase Global and Guggenheim Municipal

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Coinbase and Guggenheim is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Global and GUGGENHEIM MUNICIPAL INCOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Municipal and Coinbase Global 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 Coinbase Global are associated (or correlated) with Guggenheim Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Municipal has no effect on the direction of Coinbase Global i.e., Coinbase Global and Guggenheim Municipal go up and down completely randomly.

Pair Corralation between Coinbase Global and Guggenheim Municipal

Given the investment horizon of 90 days Coinbase Global is expected to generate 36.12 times more return on investment than Guggenheim Municipal. However, Coinbase Global is 36.12 times more volatile than Guggenheim Municipal Income. It trades about 0.24 of its potential returns per unit of risk. Guggenheim Municipal Income is currently generating about 0.0 per unit of risk. If you would invest  19,922  in Coinbase Global on December 29, 2023 and sell it today you would earn a total of  5,748  from holding Coinbase Global or generate 28.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Coinbase Global  vs.  GUGGENHEIM MUNICIPAL INCOME

 Performance 
       Timeline  
Coinbase Global 

Risk-Adjusted Performance

10 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward indicators, Coinbase Global displayed solid returns over the last few months and may actually be approaching a breakup point.
Guggenheim Municipal 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Municipal Income are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Guggenheim Municipal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Coinbase Global and Guggenheim Municipal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Coinbase Global and Guggenheim Municipal

The main advantage of trading using opposite Coinbase Global and Guggenheim Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coinbase Global position performs unexpectedly, Guggenheim Municipal 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 Municipal will offset losses from the drop in Guggenheim Municipal's long position.
The idea behind Coinbase Global and Guggenheim Municipal Income 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.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk