Correlation Between Guinness Atkinson and Invesco Energy

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

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

Diversification Opportunities for Guinness Atkinson and Invesco Energy

0.99

Correlation Coefficient

Guinness Atkinson  Invesco Energy

No risk reduction

The 3 months correlation between Guinness and Invesco is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Global and Invesco Energy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Energy 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 Global are associated (or correlated) with Invesco Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Energy has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Invesco Energy go up and down completely randomly.

Pair Corralation between Guinness Atkinson and Invesco Energy

Assuming the 90 days horizon Guinness Atkinson Global is expected to generate 0.98 times more return on investment than Invesco Energy. However, Guinness Atkinson Global is 1.02 times less risky than Invesco Energy. It trades about 0.18 of its potential returns per unit of risk. Invesco Energy Fund is currently generating about 0.13 per unit of risk. If you would invest  2,074  in Guinness Atkinson Global on May 5, 2025 and sell it today you would earn a total of  240.00  from holding Guinness Atkinson Global or generate 11.57% 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 Global  vs.  Invesco Energy Fund

Guinness Atkinson Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guinness Atkinson Global are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Guinness Atkinson may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Invesco Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Energy Fund are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Invesco Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Guinness Atkinson and Invesco Energy

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

The idea behind Guinness Atkinson Global and Invesco Energy Fund 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.