Correlation Between Guinness Atkinson and Oberweis China
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Oberweis China 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 Oberweis China 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 Oberweis China Opportunities, you can compare the effects of market volatilities on Guinness Atkinson and Oberweis China 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 Oberweis China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Oberweis China.
Diversification Opportunities for Guinness Atkinson and Oberweis China
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guinness and Oberweis is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson China and Oberweis China Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis China Oppor 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 Oberweis China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis China Oppor has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Oberweis China go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Oberweis China
Assuming the 90 days horizon Guinness Atkinson China is expected to generate 0.88 times more return on investment than Oberweis China. However, Guinness Atkinson China is 1.14 times less risky than Oberweis China. It trades about -0.23 of its potential returns per unit of risk. Oberweis China Opportunities is currently generating about -0.22 per unit of risk. If you would invest 1,366 in Guinness Atkinson China on August 26, 2024 and sell it today you would lose (98.00) from holding Guinness Atkinson China or give up 7.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson China vs. Oberweis China Opportunities
Performance |
| Timeline |
| Guinness Atkinson China |
| Oberweis China Oppor |
Guinness Atkinson and Oberweis China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Oberweis China
The main advantage of trading using opposite Guinness Atkinson and Oberweis China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Oberweis China 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 Oberweis China will offset losses from the drop in Oberweis China'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 |
| Oberweis China vs. Matthews China Fund | Oberweis China vs. T Rowe Price | Oberweis China vs. Matthews India Fund | Oberweis China vs. Guinness Atkinson China |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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