Correlation Between Guggenheim Strategic and Pioneer Fund

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

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

Diversification Opportunities for Guggenheim Strategic and Pioneer Fund

0.74

Correlation Coefficient

Guggenheim Strategic  Pioneer Fund

Poor diversification

The 3 months correlation between Guggenheim and Pioneer is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and Pioneer Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Fund Class and Guggenheim Strategic 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 Strategic Opportunities are associated (or correlated) with Pioneer Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Fund Class has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and Pioneer Fund go up and down completely randomly.

Pair Corralation between Guggenheim Strategic and Pioneer Fund

Considering the 90-day investment horizon Guggenheim Strategic is expected to generate 1.44 times less return on investment than Pioneer Fund. In addition to that, Guggenheim Strategic is 1.07 times more volatile than Pioneer Fund Class. It trades about 0.15 of its total potential returns per unit of risk. Pioneer Fund Class is currently generating about 0.24 per unit of volatility. If you would invest  4,306  in Pioneer Fund Class on March 21, 2024 and sell it today you would earn a total of  136.00  from holding Pioneer Fund Class or generate 3.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Guggenheim Strategic Opportuni  vs.  Pioneer Fund Class

Guggenheim Strategic

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Strategic Opportunities are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Guggenheim Strategic may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Pioneer Fund Class

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Fund Class are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Pioneer Fund may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Pair Trading with Guggenheim Strategic and Pioneer Fund

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

The idea behind Guggenheim Strategic Opportunities and Pioneer Fund Class 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.