GUG vs HYG: Correlation
Guggenheim Active Allocation Fund (GUG) and iShares iBoxx High Yield Corporate Bond ETF (HYG) show a strong relationship: their 3-year correlation of weekly returns is 0.64.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GUG and HYG?
Across a 3-year window, the weekly returns of GUG and HYG correlate at 0.64, strong. Lately the two have drifted apart, with the 1-year correlation at 0.52 versus 0.64 over 3 years. Stretching to 5 years gives 0.68, with an annualized covariance of 38.9 %².
HYG is one of the assets that tracks GUG most closely: it ranks #1 out of the 12 assets we track against GUG. Neither side won the trailing year by much: +5.4% against +4.6%. Note the risk asymmetry: GUG runs 2.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
GUG vs HYG: side by side
| GUG (Guggenheim Active Allocation Fund) | HYG (iShares iBoxx High Yield Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +5.4% | +4.6% |
| 5-year return | +16.3% | +19.9% |
| Volatility (ann.) | 12.9% | 4.7% |
| Beta vs S&P 500 | 0.40 | 0.22 |
| Max drawdown (3Y) | -12.1% | -4.6% |
| Market cap | $0.5B | – |
| P/E (trailing) | 9.1 | – |
| Dividend yield | 0.00% | 5.94% |
| Expense ratio | – | 0.49% |
| Assets under management | – | $17.1B |
| Sector / category | US Listed | ETF · Bonds |
HYG is a High Yield Bond fund from iShares: $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield.
Year-by-year returns
| Year | GUG | HYG |
|---|---|---|
| 2022 | -26.5% | -11.0% |
| 2023 | +20.7% | +11.5% |
| 2024 | +11.5% | +8.0% |
| 2025 | +13.1% | +8.6% |
| 2026 | +4.2% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GUG and HYG good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between GUG and HYG?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.52 over the last year and 0.68 over 5 years.
Is HYG a good diversifier for GUG?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/gug-vs-hyg.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/gug-vs-hyg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: GUG correlations · HYG correlations
