Correlation Between Coinbase Global and Guggenheim Macro

By analyzing existing cross correlation between Coinbase Global and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on Coinbase Global 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 Coinbase Global with a short position of Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coinbase Global and Guggenheim Macro.

Specify exactly 2 symbols:

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

Diversification Opportunities for Coinbase Global and Guggenheim Macro

-0.36
  Correlation Coefficient
Coinbase Global
Guggenheim Macro Opp

Very good diversification

The 3 months correlation between Coinbase and Guggenheim is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Global Inc 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 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 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 Coinbase Global i.e., Coinbase Global and Guggenheim Macro go up and down completely randomly.

Pair Corralation between Coinbase Global and Guggenheim Macro

Given the investment horizon of 90 days Coinbase Global is expected to generate 33.03 times more return on investment than Guggenheim Macro. However, Coinbase Global is 33.03 times more volatile than Guggenheim Macro Opportunities. It trades about 0.05 of its potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about -0.03 per unit of risk. If you would invest  25,000  in Coinbase Global on July 23, 2021 and sell it today you would earn a total of  5,171  from holding Coinbase Global or generate 20.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy66.67%
ValuesDaily Returns

Coinbase Global Inc  vs.  Guggenheim Macro Opportunities

 Performance (%) 
      Timeline 
Coinbase Global 
 Coinbase Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, Coinbase Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Coinbase Price Channel

Guggenheim Macro Opp 
 Guggenheim Performance
0 of 100
Over the last 90 days Guggenheim Macro Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Guggenheim Macro 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 Macro Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Coinbase Global and Guggenheim Macro

The main advantage of trading using opposite Coinbase Global and Guggenheim Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coinbase Global 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.
The idea behind Coinbase Global and Guggenheim Macro Opportunities 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go