Correlation Between High-yield Municipal and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both High-yield Municipal and Guinness Atkinson 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 High-yield Municipal and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Guinness Atkinson Asia, you can compare the effects of market volatilities on High-yield Municipal and Guinness Atkinson 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 High-yield Municipal with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Municipal and Guinness Atkinson.
Diversification Opportunities for High-yield Municipal and Guinness Atkinson
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between High-yield and Guinness is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Guinness Atkinson Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Asia and High-yield Municipal 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 High Yield Municipal Fund are associated (or correlated) with Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Asia has no effect on the direction of High-yield Municipal i.e., High-yield Municipal and Guinness Atkinson go up and down completely randomly.
Pair Corralation between High-yield Municipal and Guinness Atkinson
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 0.19 times more return on investment than Guinness Atkinson. However, High Yield Municipal Fund is 5.3 times less risky than Guinness Atkinson. It trades about 0.15 of its potential returns per unit of risk. Guinness Atkinson Asia is currently generating about 0.03 per unit of risk. If you would invest 859.00 in High Yield Municipal Fund on September 1, 2024 and sell it today you would earn a total of 42.00 from holding High Yield Municipal Fund or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Guinness Atkinson Asia
Performance |
| Timeline |
| High Yield Municipal |
| Guinness Atkinson Asia |
High-yield Municipal and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Municipal and Guinness Atkinson
The main advantage of trading using opposite High-yield Municipal and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Municipal position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |