Correlation Between Guinness Atkinson and Commonwealth Japan
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Commonwealth Japan 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 Commonwealth Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Asia and Commonwealth Japan Fund, you can compare the effects of market volatilities on Guinness Atkinson and Commonwealth Japan 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 Commonwealth Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Commonwealth Japan.
Diversification Opportunities for Guinness Atkinson and Commonwealth Japan
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guinness and Commonwealth is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asia and Commonwealth Japan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Japan 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 Asia are associated (or correlated) with Commonwealth Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Japan has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Commonwealth Japan go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Commonwealth Japan
Assuming the 90 days horizon Guinness Atkinson Asia is expected to under-perform the Commonwealth Japan. In addition to that, Guinness Atkinson is 1.11 times more volatile than Commonwealth Japan Fund. It trades about -0.03 of its total potential returns per unit of risk. Commonwealth Japan Fund is currently generating about 0.11 per unit of volatility. If you would invest 379.00 in Commonwealth Japan Fund on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Commonwealth Japan Fund or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guinness Atkinson Asia vs. Commonwealth Japan Fund
Performance |
| Timeline |
| Guinness Atkinson Asia |
| Commonwealth Japan |
Guinness Atkinson and Commonwealth Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Commonwealth Japan
The main advantage of trading using opposite Guinness Atkinson and Commonwealth Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Commonwealth Japan 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 Commonwealth Japan will offset losses from the drop in Commonwealth Japan's long position.| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
| Commonwealth Japan vs. Commonwealth Australianew Zealand | Commonwealth Japan vs. Lazard Emerging Markets | Commonwealth Japan vs. ATLANTIC PETROLPF DK | Commonwealth Japan vs. Ashmore Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |