Correlation Between Guinness Atkinson and Integrity Dividend
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Integrity Dividend 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 Integrity Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Global and Integrity Dividend Harvest, you can compare the effects of market volatilities on Guinness Atkinson and Integrity Dividend 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 Integrity Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Integrity Dividend.
Diversification Opportunities for Guinness Atkinson and Integrity Dividend
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guinness and Integrity is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Global and Integrity Dividend Harvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity Dividend 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 Global are associated (or correlated) with Integrity Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity Dividend has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Integrity Dividend go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Integrity Dividend
Assuming the 90 days horizon Guinness Atkinson is expected to generate 3.7 times less return on investment than Integrity Dividend. In addition to that, Guinness Atkinson is 1.59 times more volatile than Integrity Dividend Harvest. It trades about 0.03 of its total potential returns per unit of risk. Integrity Dividend Harvest is currently generating about 0.18 per unit of volatility. If you would invest 1,517 in Integrity Dividend Harvest on August 25, 2024 and sell it today you would earn a total of 493.00 from holding Integrity Dividend Harvest or generate 32.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Global vs. Integrity Dividend Harvest
Performance |
| Timeline |
| Guinness Atkinson Global |
| Integrity Dividend |
Guinness Atkinson and Integrity Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Integrity Dividend
The main advantage of trading using opposite Guinness Atkinson and Integrity Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Integrity Dividend 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 Integrity Dividend will offset losses from the drop in Integrity Dividend's long position.| Guinness Atkinson vs. Guinness Atkinson Alternative | Guinness Atkinson vs. Oil Gas Ultrasector | Guinness Atkinson vs. Global Resources Fund | Guinness Atkinson vs. Invesco Energy Fund |
| Integrity Dividend vs. Integrity Dividend Summit | Integrity Dividend vs. Integrity Dividend Summit | Integrity Dividend vs. Nebraska Municipal Fund | Integrity Dividend vs. Nebraska Municipal 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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