Correlation Between Guinness Atkinson and Short Oil
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Short Oil 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 Short Oil 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 Short Oil Gas, you can compare the effects of market volatilities on Guinness Atkinson and Short Oil 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 Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Short Oil.
Diversification Opportunities for Guinness Atkinson and Short Oil
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guinness and Short is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas 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 Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Short Oil go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Short Oil
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to generate 0.98 times more return on investment than Short Oil. However, Guinness Atkinson Alternative is 1.02 times less risky than Short Oil. It trades about -0.1 of its potential returns per unit of risk. Short Oil Gas is currently generating about -0.31 per unit of risk. If you would invest 564.00 in Guinness Atkinson Alternative on September 2, 2024 and sell it today you would lose (13.00) from holding Guinness Atkinson Alternative or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Short Oil Gas
Performance |
| Timeline |
| Guinness Atkinson |
| Short Oil Gas |
Guinness Atkinson and Short Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Short Oil
The main advantage of trading using opposite Guinness Atkinson and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil'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 |
| Short Oil vs. Mutual Of America | Short Oil vs. Ultramid Cap Profund Ultramid Cap | Short Oil vs. Columbia Small Cap | Short Oil vs. Victory Rs Partners |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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