Correlation Between Guinness Atkinson and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Guinness Atkinson 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 Guinness Atkinson 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 Guinness Atkinson Asia, you can compare the effects of market volatilities on Guinness Atkinson and Guinness Atkinson 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 Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Guinness Atkinson.
Diversification Opportunities for Guinness Atkinson and Guinness Atkinson
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guinness and Guinness is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Global and Guinness Atkinson Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Asia 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 Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Asia has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Guinness Atkinson
Assuming the 90 days horizon Guinness Atkinson Global is expected to generate 0.7 times more return on investment than Guinness Atkinson. However, Guinness Atkinson Global is 1.44 times less risky than Guinness Atkinson. It trades about 0.04 of its potential returns per unit of risk. Guinness Atkinson Asia is currently generating about -0.15 per unit of risk. If you would invest 6,404 in Guinness Atkinson Global on August 29, 2024 and sell it today you would earn a total of 44.00 from holding Guinness Atkinson Global or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Global vs. Guinness Atkinson Asia
Performance |
| Timeline |
| Guinness Atkinson Global |
| Guinness Atkinson Asia |
Guinness Atkinson and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Guinness Atkinson
The main advantage of trading using opposite Guinness Atkinson and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Siit Dynamic Asset | Guinness Atkinson vs. Simt Sp 500 | Guinness Atkinson vs. Columbia Large Cap |
| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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