Correlation Between Guinness Atkinson and China Region
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and China Region 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 China Region 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 China Region Fund, you can compare the effects of market volatilities on Guinness Atkinson and China Region 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 China Region. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and China Region.
Diversification Opportunities for Guinness Atkinson and China Region
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guinness and China is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson China and China Region Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Region 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 China Region. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Region has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and China Region go up and down completely randomly.
Pair Corralation between Guinness Atkinson and China Region
If you would invest 527.00 in China Region Fund on September 1, 2024 and sell it today you would earn a total of 0.00 from holding China Region Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Guinness Atkinson China vs. China Region Fund
Performance |
| Timeline |
| Guinness Atkinson China |
| China Region |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guinness Atkinson and China Region Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and China Region
The main advantage of trading using opposite Guinness Atkinson and China Region positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, China Region 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 China Region will offset losses from the drop in China Region'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 |
| China Region vs. Mesirow Financial Small | China Region vs. Icon Financial Fund | China Region vs. Davis Financial Fund | China Region vs. Transamerica Financial Life |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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