Correlation Between Guinness Atkinson and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Thrivent High 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 Thrivent High 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 Thrivent High Yield, you can compare the effects of market volatilities on Guinness Atkinson and Thrivent High 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 Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Thrivent High.
Diversification Opportunities for Guinness Atkinson and Thrivent High
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guinness and Thrivent is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asia and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield 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 Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Thrivent High go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Thrivent High
Assuming the 90 days horizon Guinness Atkinson is expected to generate 1.18 times less return on investment than Thrivent High. In addition to that, Guinness Atkinson is 7.14 times more volatile than Thrivent High Yield. It trades about 0.03 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.22 per unit of volatility. If you would invest 404.00 in Thrivent High Yield on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Thrivent High Yield or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Guinness Atkinson Asia vs. Thrivent High Yield
Performance |
| Timeline |
| Guinness Atkinson Asia |
| Thrivent High Yield |
Guinness Atkinson and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Thrivent High
The main advantage of trading using opposite Guinness Atkinson and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Thrivent High 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 Thrivent High will offset losses from the drop in Thrivent High's long position.| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |