Correlation Between Guinness Atkinson and Meridian Growth
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Meridian Growth 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 Guinness Atkinson and Meridian Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Alternative and Meridian Growth Fund, you can compare the effects of market volatilities on Guinness Atkinson and Meridian Growth 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 Guinness Atkinson with a short position of Meridian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Meridian Growth.
Diversification Opportunities for Guinness Atkinson and Meridian Growth
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guinness and Meridian is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Meridian Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Growth and Guinness Atkinson 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 Guinness Atkinson Alternative are associated (or correlated) with Meridian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Growth has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Meridian Growth go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Meridian Growth
Assuming the 90 days horizon Guinness Atkinson is expected to generate 4.71 times less return on investment than Meridian Growth. In addition to that, Guinness Atkinson is 1.26 times more volatile than Meridian Growth Fund. It trades about 0.01 of its total potential returns per unit of risk. Meridian Growth Fund is currently generating about 0.07 per unit of volatility. If you would invest 3,431 in Meridian Growth Fund on September 1, 2024 and sell it today you would earn a total of 441.00 from holding Meridian Growth Fund or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Meridian Growth Fund
Performance |
| Timeline |
| Guinness Atkinson |
| Meridian Growth |
Guinness Atkinson and Meridian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Meridian Growth
The main advantage of trading using opposite Guinness Atkinson and Meridian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Meridian Growth 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 Meridian Growth will offset losses from the drop in Meridian Growth's long position.| Guinness Atkinson vs. New Alternatives Fund | Guinness Atkinson vs. Calvert Global Energy | Guinness Atkinson vs. Firsthand Alternative Energy | Guinness Atkinson vs. Guinness Atkinson Global |
| Meridian Growth vs. Meridian Equity Income | Meridian Growth vs. Meridian Equity Income | Meridian Growth vs. Meridian Growth Fund | Meridian Growth vs. Meridian Equity Income |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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