Correlation Between Guinness Atkinson and Matthews India
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Matthews India 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 Matthews India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson China and Matthews India Fund, you can compare the effects of market volatilities on Guinness Atkinson and Matthews India 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 Matthews India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Matthews India.
Diversification Opportunities for Guinness Atkinson and Matthews India
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guinness and Matthews is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson China and Matthews India Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews India 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 China are associated (or correlated) with Matthews India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews India has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Matthews India go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Matthews India
Assuming the 90 days horizon Guinness Atkinson China is expected to generate 1.05 times more return on investment than Matthews India. However, Guinness Atkinson is 1.05 times more volatile than Matthews India Fund. It trades about -0.09 of its potential returns per unit of risk. Matthews India Fund is currently generating about -0.33 per unit of risk. If you would invest 1,281 in Guinness Atkinson China on October 24, 2024 and sell it today you would lose (28.00) from holding Guinness Atkinson China or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson China vs. Matthews India Fund
Performance |
| Timeline |
| Guinness Atkinson China |
| Matthews India |
Guinness Atkinson and Matthews India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Matthews India
The main advantage of trading using opposite Guinness Atkinson and Matthews India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Matthews India 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 Matthews India will offset losses from the drop in Matthews India's long position.| Guinness Atkinson vs. Guinness Atkinson Asia | Guinness Atkinson vs. Matthews China Fund | Guinness Atkinson vs. Columbia Greater China | Guinness Atkinson vs. Eaton Vance Greater |
| Matthews India vs. Matthews China Fund | Matthews India vs. Matthews Pacific Tiger | Matthews India vs. Eaton Vance Greater | Matthews India vs. Morgan Stanley India |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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