Correlation Between TSJA and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both TSJA 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 TSJA and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSJA and Guinness Atkinson Funds, you can compare the effects of market volatilities on TSJA 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 TSJA with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSJA and Guinness Atkinson.
Diversification Opportunities for TSJA and Guinness Atkinson
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TSJA and Guinness is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding TSJA and Guinness Atkinson Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Funds and TSJA 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 TSJA 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 Funds has no effect on the direction of TSJA i.e., TSJA and Guinness Atkinson go up and down completely randomly.
Pair Corralation between TSJA and Guinness Atkinson
Given the investment horizon of 90 days TSJA is expected to generate 0.57 times more return on investment than Guinness Atkinson. However, TSJA is 1.75 times less risky than Guinness Atkinson. It trades about 0.1 of its potential returns per unit of risk. Guinness Atkinson Funds is currently generating about -0.01 per unit of risk. If you would invest 2,493 in TSJA on September 3, 2024 and sell it today you would earn a total of 280.00 from holding TSJA or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
TSJA vs. Guinness Atkinson Funds
Performance |
| Timeline |
| TSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guinness Atkinson Funds |
TSJA and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSJA and Guinness Atkinson
The main advantage of trading using opposite TSJA and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSJA 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.The idea behind TSJA and Guinness Atkinson Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Guinness Atkinson vs. GraniteShares 125x Long | Guinness Atkinson vs. Emeren Group | Guinness Atkinson vs. Ascent Solar Technologies, | Guinness Atkinson vs. Spire 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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