Correlation Between Short Oil and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Short Oil 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 Short Oil and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Oil Gas and Guinness Atkinson Alternative, you can compare the effects of market volatilities on Short Oil 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 Short Oil with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Oil and Guinness Atkinson.
Diversification Opportunities for Short Oil and Guinness Atkinson
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Short and Guinness is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Short Oil Gas and Guinness Atkinson Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson and Short Oil 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 Short Oil Gas 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 Short Oil i.e., Short Oil and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Short Oil and Guinness Atkinson
Assuming the 90 days horizon Short Oil Gas is expected to generate 1.31 times more return on investment than Guinness Atkinson. However, Short Oil is 1.31 times more volatile than Guinness Atkinson Alternative. It trades about 0.04 of its potential returns per unit of risk. Guinness Atkinson Alternative is currently generating about 0.0 per unit of risk. If you would invest 1,373 in Short Oil Gas on November 28, 2024 and sell it today you would earn a total of 14.00 from holding Short Oil Gas or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Oil Gas vs. Guinness Atkinson Alternative
Performance |
| Timeline |
| Short Oil Gas |
| Guinness Atkinson |
Short Oil and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Oil and Guinness Atkinson
The main advantage of trading using opposite Short Oil and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Oil 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.| Short Oil vs. Jennison Natural Resources | Short Oil vs. Icon Natural Resources | Short Oil vs. Vanguard Energy Index | Short Oil vs. Tortoise Energy Independence |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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