Correlation Between Guinness Atkinson and Polen Us
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Polen Us 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 Polen Us 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 Polen Small Pany, you can compare the effects of market volatilities on Guinness Atkinson and Polen Us 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 Polen Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Polen Us.
Diversification Opportunities for Guinness Atkinson and Polen Us
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guinness and Polen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Polen Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Small Pany 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 Polen Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Small Pany has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Polen Us go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Polen Us
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to under-perform the Polen Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guinness Atkinson Alternative is 1.48 times less risky than Polen Us. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Polen Small Pany is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,426 in Polen Small Pany on September 2, 2024 and sell it today you would earn a total of 194.00 from holding Polen Small Pany or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Polen Small Pany
Performance |
| Timeline |
| Guinness Atkinson |
| Polen Small Pany |
Guinness Atkinson and Polen Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Polen Us
The main advantage of trading using opposite Guinness Atkinson and Polen Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Polen Us 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 Polen Us will offset losses from the drop in Polen Us' 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 |
| Polen Us vs. American Century Diversified | Polen Us vs. The Gabelli Small | Polen Us vs. Principal Lifetime Hybrid | Polen Us vs. Harbor Diversified International |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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