Correlation Between Columbia Acorn and Guggenheim Strategic

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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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Columbia Acorn International  vs.  Guggenheim Strategic Opportuni

 Performance 
       Timeline  
Columbia Acorn Inter 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Columbia Acorn International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Columbia Acorn is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Guggenheim Strategic 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Guggenheim Strategic Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

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.
The idea behind Columbia Acorn International 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.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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