Correlation Between Guggenheim Strategic and Eco Depot

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

Diversification Opportunities for Guggenheim Strategic and Eco Depot

-0.67

Correlation Coefficient

Guggenheim Strategic  Eco Depot

Excellent diversification

The 3 months correlation between Guggenheim and Eco is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and Eco Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eco Depot 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 Eco Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eco Depot has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and Eco Depot go up and down completely randomly.

Pair Corralation between Guggenheim Strategic and Eco Depot

Considering the 90-day investment horizon Guggenheim Strategic is expected to generate 1.07 times less return on investment than Eco Depot. But when comparing it to its historical volatility, Guggenheim Strategic Opportunities is 20.25 times less risky than Eco Depot. It trades about 0.2 of its potential returns per unit of risk. Eco Depot is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Eco Depot on May 6, 2025 and sell it today you would lose (1.06) from holding Eco Depot or give up 21.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Guggenheim Strategic Opportuni  vs.  Eco Depot

Guggenheim Strategic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Strategic Opportunities are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Guggenheim Strategic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Eco Depot

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eco Depot has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively unsteady fundamental indicators, Eco Depot may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Guggenheim Strategic and Eco Depot

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

The idea behind Guggenheim Strategic Opportunities and Eco Depot 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.