Correlation Between Guinness Atkinson and Perkins Select
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Perkins Select 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 Perkins Select 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 Perkins Select Value, you can compare the effects of market volatilities on Guinness Atkinson and Perkins Select 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 Perkins Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Perkins Select.
Diversification Opportunities for Guinness Atkinson and Perkins Select
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guinness and Perkins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asia and Perkins Select Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Select Value 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 Perkins Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Select Value has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Perkins Select go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Perkins Select
Assuming the 90 days horizon Guinness Atkinson Asia is expected to generate 0.57 times more return on investment than Perkins Select. However, Guinness Atkinson Asia is 1.75 times less risky than Perkins Select. It trades about 0.15 of its potential returns per unit of risk. Perkins Select Value is currently generating about -0.17 per unit of risk. 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Asia vs. Perkins Select Value
Performance |
| Timeline |
| Guinness Atkinson Asia |
| Perkins Select Value |
Guinness Atkinson and Perkins Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Perkins Select
The main advantage of trading using opposite Guinness Atkinson and Perkins Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Perkins Select 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 Perkins Select will offset losses from the drop in Perkins Select's long position.| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
| Perkins Select vs. Janus Overseas Fund | Perkins Select vs. Janus Balanced Fund | Perkins Select vs. Perkins Mid Cap | Perkins Select vs. Janus Enterprise 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 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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