Correlation Between Guggenheim Strategic and IShares Core

Can any of the company-specific risk be diversified away by investing in both Guggenheim Strategic and IShares Core 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 IShares Core 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 iShares Core Aggregate, you can compare the effects of market volatilities on Guggenheim Strategic and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Strategic and IShares Core.

Diversification Opportunities for Guggenheim Strategic and IShares Core

0.79

Correlation Coefficient

Guggenheim Strategic  IShares Core

Poor diversification

The 3 months correlation between Guggenheim and IShares is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and iShares Core Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Aggregate 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Aggregate has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and IShares Core go up and down completely randomly.

Pair Corralation between Guggenheim Strategic and IShares Core

Considering the 90-day investment horizon Guggenheim Strategic Opportunities is expected to generate 1.64 times more return on investment than IShares Core. However, Guggenheim Strategic is 1.64 times more volatile than iShares Core Aggregate. It trades about 0.22 of its potential returns per unit of risk. iShares Core Aggregate is currently generating about 0.11 per unit of risk. If you would invest  1,394  in Guggenheim Strategic Opportunities on May 7, 2025 and sell it today you would earn a total of  99.00  from holding Guggenheim Strategic Opportunities or generate 7.1% 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.  iShares Core Aggregate

Guggenheim Strategic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Strategic Opportunities are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Guggenheim Strategic may actually be approaching a critical reversion point that can send shares even higher in September 2025.

iShares Core Aggregate

Risk-Adjusted Performance

Fair

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

Pair Trading with Guggenheim Strategic and IShares Core

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

The idea behind Guggenheim Strategic Opportunities and iShares Core Aggregate 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.