Correlation Between Guinness Atkinson and Columbia Large
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Columbia Large 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 Columbia Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Global and Columbia Large Cap, you can compare the effects of market volatilities on Guinness Atkinson and Columbia Large 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 Columbia Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Columbia Large.
Diversification Opportunities for Guinness Atkinson and Columbia Large
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guinness and Columbia is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Global and Columbia Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Large Cap 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 Global are associated (or correlated) with Columbia Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Large Cap has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Columbia Large go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Columbia Large
Assuming the 90 days horizon Guinness Atkinson is expected to generate 1.27 times less return on investment than Columbia Large. In addition to that, Guinness Atkinson is 1.51 times more volatile than Columbia Large Cap. It trades about 0.06 of its total potential returns per unit of risk. Columbia Large Cap is currently generating about 0.11 per unit of volatility. If you would invest 4,305 in Columbia Large Cap on August 26, 2024 and sell it today you would earn a total of 2,300 from holding Columbia Large Cap or generate 53.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Global vs. Columbia Large Cap
Performance |
| Timeline |
| Guinness Atkinson Global |
| Columbia Large Cap |
Guinness Atkinson and Columbia Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Columbia Large
The main advantage of trading using opposite Guinness Atkinson and Columbia Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Columbia Large 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 Columbia Large will offset losses from the drop in Columbia Large's long position.| Guinness Atkinson vs. Guinness Atkinson Asia | Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Alternative |
| Columbia Large vs. Columbia Small Cap | Columbia Large vs. Columbia Mid Cap | Columbia Large vs. T Rowe Price | Columbia Large vs. Siit Dynamic Asset |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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