Correlation Between Guggenheim Strategic and GRI Bio

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

Diversification Opportunities for Guggenheim Strategic and GRI Bio

0.22

Correlation Coefficient

Guggenheim Strategic  GRI Bio

Modest diversification

The 3 months correlation between Guggenheim and GRI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and GRI Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRI Bio 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 GRI Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRI Bio has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and GRI Bio go up and down completely randomly.

Pair Corralation between Guggenheim Strategic and GRI Bio

Considering the 90-day investment horizon Guggenheim Strategic Opportunities is expected to generate 0.07 times more return on investment than GRI Bio. However, Guggenheim Strategic Opportunities is 14.68 times less risky than GRI Bio. It trades about 0.23 of its potential returns per unit of risk. GRI Bio is currently generating about -0.03 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Guggenheim Strategic Opportuni  vs.  GRI Bio

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.

GRI Bio

Risk-Adjusted Performance

Very Weak

Over the last 90 days GRI Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

Pair Trading with Guggenheim Strategic and GRI Bio

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

The idea behind Guggenheim Strategic Opportunities and GRI Bio 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.