Correlation Between Brookfield Real and Guggenheim Strategic

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

By analyzing existing cross correlation between Brookfield Real Assets and Guggenheim Strategic Opportunities, you can compare the effects of market volatilities on Brookfield Real and Guggenheim Strategic 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 Brookfield Real with a short position of Guggenheim Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Real and Guggenheim Strategic.

Diversification Opportunities for Brookfield Real and Guggenheim Strategic

0.91

Correlation Coefficient

Brookfield Real  Guggenheim Strategic

Almost no diversification

The 3 months correlation between Brookfield and Guggenheim is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Real Assets and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic and Brookfield Real 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 Brookfield Real Assets are associated (or correlated) with Guggenheim Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Strategic has no effect on the direction of Brookfield Real i.e., Brookfield Real and Guggenheim Strategic go up and down completely randomly.

Pair Corralation between Brookfield Real and Guggenheim Strategic

Allowing for the 90-day total investment horizon Brookfield Real is expected to generate 1.34 times less return on investment than Guggenheim Strategic. But when comparing it to its historical volatility, Brookfield Real Assets is 1.12 times less risky than Guggenheim Strategic. It trades about 0.19 of its potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  1,394  in Guggenheim Strategic Opportunities on May 7, 2025 and sell it today you would earn a total of  100.00  from holding Guggenheim Strategic Opportunities or generate 7.17% return on investment over 90 days.

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

Brookfield Real Assets  vs.  Guggenheim Strategic Opportuni

Brookfield Real Assets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Real Assets are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Brookfield Real is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Brookfield Real and Guggenheim Strategic

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

The idea behind Brookfield Real Assets and Guggenheim Strategic Opportunities 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.

Check out your portfolio center.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.