Correlation Between Jacob Forward and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Jacob Forward and Guinness Atkinson 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 Jacob Forward and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Forward ETF and Guinness Atkinson Asset, you can compare the effects of market volatilities on Jacob Forward and Guinness Atkinson 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 Jacob Forward with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Forward and Guinness Atkinson.
Diversification Opportunities for Jacob Forward and Guinness Atkinson
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacob and Guinness is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Forward ETF and Guinness Atkinson Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Asset and Jacob Forward 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 Jacob Forward ETF are associated (or correlated) with Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Asset has no effect on the direction of Jacob Forward i.e., Jacob Forward and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Jacob Forward and Guinness Atkinson
Given the investment horizon of 90 days Jacob Forward ETF is expected to generate 4.62 times more return on investment than Guinness Atkinson. However, Jacob Forward is 4.62 times more volatile than Guinness Atkinson Asset. It trades about 0.2 of its potential returns per unit of risk. Guinness Atkinson Asset is currently generating about 0.19 per unit of risk. If you would invest 1,108 in Jacob Forward ETF on September 13, 2024 and sell it today you would earn a total of 199.00 from holding Jacob Forward ETF or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
Jacob Forward ETF vs. Guinness Atkinson Asset
Performance |
| Timeline |
| Jacob Forward ETF |
| Guinness Atkinson Asset |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Jacob Forward and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Forward and Guinness Atkinson
The main advantage of trading using opposite Jacob Forward and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Forward position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Jacob Forward vs. Amplify Thematic All Stars | Jacob Forward vs. Jacob Micro Cap | Jacob Forward vs. Main Thematic Innovation |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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