Correlation Between Guinness Atkinson and AdvisorShares

Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and AdvisorShares 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 AdvisorShares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guinness Atkinson Asset and AdvisorShares Q Dynamic, you can compare the effects of market volatilities on Guinness Atkinson and AdvisorShares 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 AdvisorShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and AdvisorShares.

Diversification Opportunities for Guinness Atkinson and AdvisorShares

0.0

Correlation Coefficient

Guinness Atkinson  AdvisorShares

Pay attention - limited upside

The 3 months correlation between Guinness and AdvisorShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asset and AdvisorShares Q Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Q Dynamic 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 Asset are associated (or correlated) with AdvisorShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Q Dynamic has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and AdvisorShares go up and down completely randomly.

Pair Corralation between Guinness Atkinson and AdvisorShares

If you would invest (100.00) in Guinness Atkinson Asset on December 24, 2024 and sell it today you would earn a total of  100.00  from holding Guinness Atkinson Asset or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Guinness Atkinson Asset  vs.  AdvisorShares Q Dynamic

Guinness Atkinson Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guinness Atkinson Asset has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Guinness Atkinson is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

AdvisorShares Q Dynamic

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdvisorShares Q Dynamic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with Guinness Atkinson and AdvisorShares

The main advantage of trading using opposite Guinness Atkinson and AdvisorShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, AdvisorShares 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 AdvisorShares will offset losses from the drop in AdvisorShares' long position.

The idea behind Guinness Atkinson Asset and AdvisorShares Q Dynamic 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.