Correlation Between Guggenheim Strategic and MicroAlgo

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

Diversification Opportunities for Guggenheim Strategic and MicroAlgo

-0.84

Correlation Coefficient

Guggenheim Strategic  MicroAlgo

Pay attention - limited upside

The 3 months correlation between Guggenheim and MicroAlgo is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo 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 MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and MicroAlgo go up and down completely randomly.

Pair Corralation between Guggenheim Strategic and MicroAlgo

Considering the 90-day investment horizon Guggenheim Strategic Opportunities is expected to generate 0.04 times more return on investment than MicroAlgo. However, Guggenheim Strategic Opportunities is 24.55 times less risky than MicroAlgo. It trades about 0.19 of its potential returns per unit of risk. MicroAlgo is currently generating about -0.27 per unit of risk. If you would invest  1,421  in Guggenheim Strategic Opportunities on May 12, 2025 and sell it today you would earn a total of  77.00  from holding Guggenheim Strategic Opportunities or generate 5.42% return on investment over 90 days.

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

Guggenheim Strategic Opportuni  vs.  MicroAlgo

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 14 (%) 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.

MicroAlgo

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Guggenheim Strategic and MicroAlgo

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

The idea behind Guggenheim Strategic Opportunities and MicroAlgo 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.