Correlation Between Columbia Acorn and Guggenheim Strategic
Can any of the company-specific risk be diversified away by investing in both Columbia Acorn 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 Columbia Acorn and Guggenheim Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Acorn International and Guggenheim Strategic Opportunities, you can compare the effects of market volatilities on Columbia Acorn 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 Columbia Acorn with a short position of Guggenheim Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Acorn and Guggenheim Strategic.
Diversification Opportunities for Columbia Acorn and Guggenheim Strategic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Columbia and Guggenheim is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Acorn International and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic and Columbia Acorn 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 Columbia Acorn International 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 Columbia Acorn i.e., Columbia Acorn and Guggenheim Strategic go up and down completely randomly.
Pair Corralation between Columbia Acorn and Guggenheim Strategic
Assuming the 90 days horizon Columbia Acorn International is expected to generate 0.52 times more return on investment than Guggenheim Strategic. However, Columbia Acorn International is 1.94 times less risky than Guggenheim Strategic. It trades about -0.05 of its potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about -0.15 per unit of risk. If you would invest 2,462 in Columbia Acorn International on September 13, 2025 and sell it today you would lose (76.00) from holding Columbia Acorn International or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Acorn International vs. Guggenheim Strategic Opportuni
Performance |
| Timeline |
| Columbia Acorn Inter |
| Guggenheim Strategic |
Columbia Acorn and Guggenheim Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Acorn and Guggenheim Strategic
The main advantage of trading using opposite Columbia Acorn and Guggenheim Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Acorn 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.| Columbia Acorn vs. Fidelity Advisor Large | Columbia Acorn vs. Cohen And Steers | Columbia Acorn vs. Kayne Anderson MLP | Columbia Acorn vs. Pimco Dynamic Income |
| Guggenheim Strategic vs. Cornerstone Strategic Value | Guggenheim Strategic vs. Cohen And Steers | Guggenheim Strategic vs. Wasatch E Growth | Guggenheim Strategic vs. Fidelity Advisor Large |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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