Correlation Between Fidelity China and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Fidelity China 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 Fidelity China and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity China Region and Guinness Atkinson China, you can compare the effects of market volatilities on Fidelity China 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 Fidelity China with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity China and Guinness Atkinson.
Diversification Opportunities for Fidelity China and Guinness Atkinson
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Guinness is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity China Region and Guinness Atkinson China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson China and Fidelity China 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 Fidelity China Region 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 China has no effect on the direction of Fidelity China i.e., Fidelity China and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Fidelity China and Guinness Atkinson
Assuming the 90 days horizon Fidelity China Region is expected to generate 0.88 times more return on investment than Guinness Atkinson. However, Fidelity China Region is 1.14 times less risky than Guinness Atkinson. It trades about 0.03 of its potential returns per unit of risk. Guinness Atkinson China is currently generating about -0.02 per unit of risk. If you would invest 3,139 in Fidelity China Region on August 30, 2024 and sell it today you would earn a total of 505.00 from holding Fidelity China Region or generate 16.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity China Region vs. Guinness Atkinson China
Performance |
| Timeline |
| Fidelity China Region |
| Guinness Atkinson China |
Fidelity China and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity China and Guinness Atkinson
The main advantage of trading using opposite Fidelity China and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity China 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.| Fidelity China vs. Fidelity China Region | Fidelity China vs. Fidelity China Region | Fidelity China vs. Fidelity Advisor Emerging | Fidelity China vs. Fidelity Advisor International |
| Guinness Atkinson vs. Guinness Atkinson Asia | Guinness Atkinson vs. Matthews China Fund | Guinness Atkinson vs. Columbia Greater China | Guinness Atkinson vs. Eaton Vance Greater |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |