Correlation Between Guinness Atkinson and Simt Sp
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Simt Sp 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 Simt Sp 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 Simt Sp 500, you can compare the effects of market volatilities on Guinness Atkinson and Simt Sp 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 Simt Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Simt Sp.
Diversification Opportunities for Guinness Atkinson and Simt Sp
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guinness and Simt is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Global and Simt Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Sp 500 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 Simt Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Sp 500 has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Simt Sp go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Simt Sp
Assuming the 90 days horizon Guinness Atkinson Global is expected to generate 1.31 times more return on investment than Simt Sp. However, Guinness Atkinson is 1.31 times more volatile than Simt Sp 500. It trades about 0.06 of its potential returns per unit of risk. Simt Sp 500 is currently generating about 0.07 per unit of risk. If you would invest 4,638 in Guinness Atkinson Global on August 26, 2024 and sell it today you would earn a total of 1,684 from holding Guinness Atkinson Global or generate 36.31% 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. Simt Sp 500
Performance |
| Timeline |
| Guinness Atkinson Global |
| Simt Sp 500 |
Guinness Atkinson and Simt Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Simt Sp
The main advantage of trading using opposite Guinness Atkinson and Simt Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Simt Sp 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 Simt Sp will offset losses from the drop in Simt Sp'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 |
| Simt Sp vs. Simt Multi Asset Accumulation | Simt Sp vs. Saat Market Growth | Simt Sp vs. Simt Real Return | Simt Sp vs. Simt Small Cap |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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