Correlation Between Guinness Atkinson and Victory Global
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Victory Global 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 Victory Global 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 Victory Global Natural, you can compare the effects of market volatilities on Guinness Atkinson and Victory Global 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 Victory Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Victory Global.
Diversification Opportunities for Guinness Atkinson and Victory Global
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guinness and Victory is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Victory Global Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Global Natural 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 Victory Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Global Natural has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Victory Global go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Victory Global
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to under-perform the Victory Global. 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 Victory Global. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Victory Global Natural is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,371 in Victory Global Natural on September 1, 2024 and sell it today you would earn a total of 244.00 from holding Victory Global Natural or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Victory Global Natural
Performance |
| Timeline |
| Guinness Atkinson |
| Victory Global Natural |
Guinness Atkinson and Victory Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Victory Global
The main advantage of trading using opposite Guinness Atkinson and Victory Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Victory Global 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 Victory Global will offset losses from the drop in Victory Global'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 |
| Victory Global vs. Rbc Global Opportunities | Victory Global vs. Artisan Global Unconstrained | Victory Global vs. Barings Global Floating | Victory Global vs. Federated Global Allocation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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