Correlation Between Portfolio and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Portfolio 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 Portfolio and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Portfolio 21 Global and Guinness Atkinson Global, you can compare the effects of market volatilities on Portfolio 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 Portfolio with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Portfolio and Guinness Atkinson.
Diversification Opportunities for Portfolio and Guinness Atkinson
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Portfolio and Guinness is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Portfolio 21 Global and Guinness Atkinson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Global and Portfolio 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 Portfolio 21 Global 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 Global has no effect on the direction of Portfolio i.e., Portfolio and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Portfolio and Guinness Atkinson
Assuming the 90 days horizon Portfolio 21 Global is expected to under-perform the Guinness Atkinson. In addition to that, Portfolio is 1.7 times more volatile than Guinness Atkinson Global. It trades about -0.11 of its total potential returns per unit of risk. Guinness Atkinson Global is currently generating about 0.02 per unit of volatility. If you would invest 2,262 in Guinness Atkinson Global on October 26, 2024 and sell it today you would earn a total of 18.00 from holding Guinness Atkinson Global or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Portfolio 21 Global vs. Guinness Atkinson Global
Performance |
| Timeline |
| Portfolio 21 Global |
| Guinness Atkinson Global |
Portfolio and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Portfolio and Guinness Atkinson
The main advantage of trading using opposite Portfolio and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Portfolio 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.| Portfolio vs. New Alternatives Fund | Portfolio vs. Green Century Equity | Portfolio vs. Green Century Balanced | Portfolio vs. Neuberger Berman Socially |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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