Correlation Between Perkins Select and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Perkins Select 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 Perkins Select and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perkins Select Value and Guinness Atkinson Asia, you can compare the effects of market volatilities on Perkins Select 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 Perkins Select with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perkins Select and Guinness Atkinson.
Diversification Opportunities for Perkins Select and Guinness Atkinson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perkins and Guinness is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perkins Select Value and Guinness Atkinson Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Asia and Perkins Select 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 Perkins Select Value 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 Asia has no effect on the direction of Perkins Select i.e., Perkins Select and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Perkins Select and Guinness Atkinson
Assuming the 90 days horizon Perkins Select Value is expected to under-perform the Guinness Atkinson. In addition to that, Perkins Select is 1.75 times more volatile than Guinness Atkinson Asia. It trades about -0.17 of its total potential returns per unit of risk. Guinness Atkinson Asia is currently generating about 0.15 per unit of volatility. If you would invest 1,496 in Guinness Atkinson Asia on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Guinness Atkinson Asia or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perkins Select Value vs. Guinness Atkinson Asia
Performance |
| Timeline |
| Perkins Select Value |
| Guinness Atkinson Asia |
Perkins Select and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perkins Select and Guinness Atkinson
The main advantage of trading using opposite Perkins Select and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perkins Select 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.| Perkins Select vs. Janus Overseas Fund | Perkins Select vs. Janus Balanced Fund | Perkins Select vs. Perkins Mid Cap | Perkins Select vs. Janus Enterprise Fund |
| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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