Correlation Between Guinness Atkinson and Guggenheim Long
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Guggenheim Long 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 Guggenheim Long 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 Guggenheim Long Short, you can compare the effects of market volatilities on Guinness Atkinson and Guggenheim Long 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 Guggenheim Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Guggenheim Long.
Diversification Opportunities for Guinness Atkinson and Guggenheim Long
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guinness and Guggenheim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Guggenheim Long Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Long Short 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 Guggenheim Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Long Short has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Guggenheim Long go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Guggenheim Long
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to under-perform the Guggenheim Long. In addition to that, Guinness Atkinson is 2.45 times more volatile than Guggenheim Long Short. It trades about -0.02 of its total potential returns per unit of risk. Guggenheim Long Short is currently generating about 0.07 per unit of volatility. If you would invest 1,931 in Guggenheim Long Short on September 2, 2024 and sell it today you would earn a total of 262.00 from holding Guggenheim Long Short or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Guggenheim Long Short
Performance |
| Timeline |
| Guinness Atkinson |
| Guggenheim Long Short |
Guinness Atkinson and Guggenheim Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Guggenheim Long
The main advantage of trading using opposite Guinness Atkinson and Guggenheim Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Guggenheim Long 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 Guggenheim Long will offset losses from the drop in Guggenheim Long'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 |
| Guggenheim Long vs. Ab Global Risk | Guggenheim Long vs. Artisan Global Unconstrained | Guggenheim Long vs. Barings Global Floating | Guggenheim Long vs. Commonwealth Global Fund |
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.
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