Correlation Between Global X and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Social and Guinness Atkinson Asset, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Guinness Atkinson.
Diversification Opportunities for Global X and Guinness Atkinson
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Guinness is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Global X Social 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 Global X 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 Global X Social 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 Global X i.e., Global X and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Global X and Guinness Atkinson
If you would invest 4,175 in Global X Social on September 13, 2024 and sell it today you would earn a total of 344.10 from holding Global X Social or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Global X Social vs. Guinness Atkinson Asset
Performance |
| Timeline |
| Global X Social |
| Guinness Atkinson Asset |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Global X and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Guinness Atkinson
The main advantage of trading using opposite Global X and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Global X Millennials | Global X vs. First Trust Cloud | Global X vs. Global X FinTech | Global X vs. Invesco NASDAQ Internet |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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