Correlation Between Calvert Global and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Guinness Atkinson Global, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Guinness Atkinson.
Diversification Opportunities for Calvert Global and Guinness Atkinson
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Guinness is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Guinness Atkinson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Global and Calvert Global 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 Calvert Global 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 Global has no effect on the direction of Calvert Global i.e., Calvert Global and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Calvert Global and Guinness Atkinson
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Guinness Atkinson. In addition to that, Calvert Global is 1.09 times more volatile than Guinness Atkinson Global. It trades about -0.11 of its total potential returns per unit of risk. Guinness Atkinson Global is currently generating about 0.02 per unit of volatility. If you would invest 2,262 in Guinness Atkinson Global on October 26, 2024 and sell it today you would earn a total of 18.00 from holding Guinness Atkinson Global or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Guinness Atkinson Global
Performance |
| Timeline |
| Calvert Global Energy |
| Guinness Atkinson Global |
Calvert Global and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Guinness Atkinson
The main advantage of trading using opposite Calvert Global and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Tiaa Cref Inflation Linked Bond | Calvert Global vs. Credit Suisse Multialternative | Calvert Global vs. Ab Bond Inflation | Calvert Global vs. Abbey Capital Futures |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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