Correlation Between Guinness Atkinson and Janus Asia
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Janus Asia 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 Janus Asia 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 Janus Asia Equity, you can compare the effects of market volatilities on Guinness Atkinson and Janus Asia 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 Janus Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Janus Asia.
Diversification Opportunities for Guinness Atkinson and Janus Asia
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guinness and Janus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asia and Janus Asia Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Asia Equity 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 Janus Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Asia Equity has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Janus Asia go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Janus Asia
If you would invest 1,496 in Guinness Atkinson Asia on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Guinness Atkinson Asia or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Guinness Atkinson Asia vs. Janus Asia Equity
Performance |
| Timeline |
| Guinness Atkinson Asia |
| Janus Asia Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guinness Atkinson and Janus Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Janus Asia
The main advantage of trading using opposite Guinness Atkinson and Janus Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Janus Asia 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 Janus Asia will offset losses from the drop in Janus Asia's long position.| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
| Janus Asia vs. Virtus Convertible | Janus Asia vs. Calamos Dynamic Convertible | Janus Asia vs. Putnam Convertible Incm Gwth | Janus Asia vs. Fidelity Sai Convertible |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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