Correlation Between Guinness Atkinson and Emerging Growth
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Emerging Growth 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 Emerging Growth 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 Emerging Growth Fund, you can compare the effects of market volatilities on Guinness Atkinson and Emerging Growth 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 Emerging Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Emerging Growth.
Diversification Opportunities for Guinness Atkinson and Emerging Growth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guinness and Emerging is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Emerging Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Growth 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 Emerging Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Growth has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Emerging Growth go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Emerging Growth
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to generate 0.79 times more return on investment than Emerging Growth. However, Guinness Atkinson Alternative is 1.27 times less risky than Emerging Growth. It trades about 0.01 of its potential returns per unit of risk. Emerging Growth Fund is currently generating about -0.17 per unit of risk. If you would invest 505.00 in Guinness Atkinson Alternative on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Guinness Atkinson Alternative or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Emerging Growth Fund
Performance |
| Timeline |
| Guinness Atkinson |
| Emerging Growth |
Guinness Atkinson and Emerging Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Emerging Growth
The main advantage of trading using opposite Guinness Atkinson and Emerging Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Emerging Growth 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 Emerging Growth will offset losses from the drop in Emerging Growth'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 |
| Emerging Growth vs. Upright Assets Allocation | Emerging Growth vs. Knights Of Umbus | Emerging Growth vs. T Rowe Price | Emerging Growth vs. Balanced Allocation 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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