Correlation Between BlackRock ESG and Guggenheim Active

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

By analyzing existing cross correlation between BlackRock ESG Capital and Guggenheim Active Allocation, you can compare the effects of market volatilities on BlackRock ESG and Guggenheim Active 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 BlackRock ESG with a short position of Guggenheim Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock ESG and Guggenheim Active.

Diversification Opportunities for BlackRock ESG and Guggenheim Active

0.8

Correlation Coefficient

BlackRock ESG  Guggenheim Active

Very poor diversification

The 3 months correlation between BlackRock and Guggenheim is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and Guggenheim Active Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Active and BlackRock ESG 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 BlackRock ESG Capital are associated (or correlated) with Guggenheim Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Active has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and Guggenheim Active go up and down completely randomly.

Pair Corralation between BlackRock ESG and Guggenheim Active

Given the investment horizon of 90 days BlackRock ESG Capital is expected to generate 1.12 times more return on investment than Guggenheim Active. However, BlackRock ESG is 1.12 times more volatile than Guggenheim Active Allocation. It trades about 0.24 of its potential returns per unit of risk. Guggenheim Active Allocation is currently generating about 0.11 per unit of risk. If you would invest  1,480  in BlackRock ESG Capital on May 6, 2025 and sell it today you would earn a total of  155.00  from holding BlackRock ESG Capital or generate 10.47% return on investment over 90 days.

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

BlackRock ESG Capital  vs.  Guggenheim Active Allocation

BlackRock ESG Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock ESG Capital are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BlackRock ESG may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Guggenheim Active

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Active Allocation are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Guggenheim Active is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BlackRock ESG and Guggenheim Active

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

The idea behind BlackRock ESG Capital and Guggenheim Active Allocation 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..