Correlation Between New Alternatives and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both New Alternatives 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 New Alternatives and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Alternatives Fund and Guinness Atkinson Alternative, you can compare the effects of market volatilities on New Alternatives 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 New Alternatives with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Alternatives and Guinness Atkinson.
Diversification Opportunities for New Alternatives and Guinness Atkinson
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Guinness is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding New Alternatives Fund and Guinness Atkinson Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson and New Alternatives 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 New Alternatives Fund 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 has no effect on the direction of New Alternatives i.e., New Alternatives and Guinness Atkinson go up and down completely randomly.
Pair Corralation between New Alternatives and Guinness Atkinson
Assuming the 90 days horizon New Alternatives Fund is expected to under-perform the Guinness Atkinson. In addition to that, New Alternatives is 1.18 times more volatile than Guinness Atkinson Alternative. It trades about -0.19 of its total potential returns per unit of risk. Guinness Atkinson Alternative is currently generating about -0.2 per unit of volatility. If you would invest 571.00 in Guinness Atkinson Alternative on August 26, 2024 and sell it today you would lose (29.00) from holding Guinness Atkinson Alternative or give up 5.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Alternatives Fund vs. Guinness Atkinson Alternative
Performance |
| Timeline |
| New Alternatives |
| Guinness Atkinson |
New Alternatives and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Alternatives and Guinness Atkinson
The main advantage of trading using opposite New Alternatives and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Alternatives 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.| New Alternatives vs. Guinness Atkinson Alternative | New Alternatives vs. Calvert Global Energy | New Alternatives vs. Portfolio 21 Global | New Alternatives vs. Green Century Balanced |
| Guinness Atkinson vs. New Alternatives Fund | Guinness Atkinson vs. Calvert Global Energy | Guinness Atkinson vs. Firsthand Alternative Energy | 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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