Correlation Between Guinness Atkinson and Ab Value
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Ab Value 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 Guinness Atkinson and Ab Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Alternative and Ab Value Fund, you can compare the effects of market volatilities on Guinness Atkinson and Ab Value 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 Guinness Atkinson with a short position of Ab Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Ab Value.
Diversification Opportunities for Guinness Atkinson and Ab Value
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guinness and ABVCX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Ab Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Value Fund and Guinness Atkinson 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 Guinness Atkinson Alternative are associated (or correlated) with Ab Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Value Fund has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Ab Value go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Ab Value
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to generate 1.73 times more return on investment than Ab Value. However, Guinness Atkinson is 1.73 times more volatile than Ab Value Fund. It trades about 0.22 of its potential returns per unit of risk. Ab Value Fund is currently generating about 0.24 per unit of risk. If you would invest 524.00 in Guinness Atkinson Alternative on June 1, 2025 and sell it today you would earn a total of 77.00 from holding Guinness Atkinson Alternative or generate 14.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Ab Value Fund
Performance |
| Timeline |
| Guinness Atkinson |
| Ab Value Fund |
Guinness Atkinson and Ab Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Ab Value
The main advantage of trading using opposite Guinness Atkinson and Ab Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Ab Value 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 Ab Value will offset losses from the drop in Ab Value's long position.| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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