Correlation Between Guinness Atkinson and VCLO

Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and VCLO 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 VCLO 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 VCLO, you can compare the effects of market volatilities on Guinness Atkinson and VCLO 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 VCLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and VCLO.

Diversification Opportunities for Guinness Atkinson and VCLO

-0.54

Correlation Coefficient

Guinness Atkinson  VCLO

Excellent diversification

The 3 months correlation between Guinness and VCLO is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asset and VCLO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCLO 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 VCLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCLO has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and VCLO go up and down completely randomly.

Pair Corralation between Guinness Atkinson and VCLO

If you would invest  1,462  in Guinness Atkinson Asset on September 16, 2024 and sell it today you would earn a total of  76.00  from holding Guinness Atkinson Asset or generate 5.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	2.78%
Values	Daily Returns

Guinness Atkinson Asset  vs.  VCLO

Guinness Atkinson Asset

Risk-Adjusted Performance

0 of 100

Good

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 fragile basic indicators, Guinness Atkinson may actually be approaching a critical reversion point that can send shares even higher in January 2025.

VCLO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VCLO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, VCLO is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Guinness Atkinson and VCLO

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

The idea behind Guinness Atkinson Asset and VCLO 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.