Correlation Between Guinness Atkinson and Shelton Green
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Shelton Green 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 Shelton Green 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 Shelton Green Alpha, you can compare the effects of market volatilities on Guinness Atkinson and Shelton Green 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 Shelton Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Shelton Green.
Diversification Opportunities for Guinness Atkinson and Shelton Green
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guinness and Shelton is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Shelton Green Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Green Alpha 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 Shelton Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Green Alpha has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Shelton Green go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Shelton Green
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to under-perform the Shelton Green. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guinness Atkinson Alternative is 1.05 times less risky than Shelton Green. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Shelton Green Alpha is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,293 in Shelton Green Alpha on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Shelton Green Alpha or generate 0.52% 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. Shelton Green Alpha
Performance |
| Timeline |
| Guinness Atkinson |
| Shelton Green Alpha |
Guinness Atkinson and Shelton Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Shelton Green
The main advantage of trading using opposite Guinness Atkinson and Shelton Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Shelton Green 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 Shelton Green will offset losses from the drop in Shelton Green'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 |
| Shelton Green vs. Pro Blend Moderate Term | Shelton Green vs. Jp Morgan Smartretirement | Shelton Green vs. Columbia Moderate Growth | Shelton Green vs. Deutsche Multi Asset Moderate |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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