Correlation Between Firsthand Alternative and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative 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 Firsthand Alternative and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Guinness Atkinson Alternative, you can compare the effects of market volatilities on Firsthand Alternative 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 Firsthand Alternative with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Guinness Atkinson.
Diversification Opportunities for Firsthand Alternative and Guinness Atkinson
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Firsthand and Guinness is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Guinness Atkinson Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson and Firsthand Alternative 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 Firsthand Alternative Energy 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 has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Guinness Atkinson
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 1.43 times more return on investment than Guinness Atkinson. However, Firsthand Alternative is 1.43 times more volatile than Guinness Atkinson Alternative. It trades about 0.04 of its potential returns per unit of risk. Guinness Atkinson Alternative is currently generating about 0.03 per unit of risk. If you would invest 893.00 in Firsthand Alternative Energy on August 28, 2024 and sell it today you would earn a total of 123.00 from holding Firsthand Alternative Energy or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Guinness Atkinson Alternative
Performance |
| Timeline |
| Firsthand Alternative |
| Guinness Atkinson |
Firsthand Alternative and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Guinness Atkinson
The main advantage of trading using opposite Firsthand Alternative and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative 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.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Guinness Atkinson vs. New Alternatives Fund | Guinness Atkinson vs. Calvert Global Energy | Guinness Atkinson vs. Firsthand Alternative Energy | 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |