Correlation Between Glg Intl and Calvert Green
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Calvert Green 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 Glg Intl and Calvert Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Calvert Green Bond, you can compare the effects of market volatilities on Glg Intl and Calvert Green 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 Glg Intl with a short position of Calvert Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Calvert Green.
Diversification Opportunities for Glg Intl and Calvert Green
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glg and Calvert is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Calvert Green Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Green Bond and Glg Intl 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 Glg Intl Small are associated (or correlated) with Calvert Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Green Bond has no effect on the direction of Glg Intl i.e., Glg Intl and Calvert Green go up and down completely randomly.
Pair Corralation between Glg Intl and Calvert Green
Assuming the 90 days horizon Glg Intl Small is expected to generate 3.11 times more return on investment than Calvert Green. However, Glg Intl is 3.11 times more volatile than Calvert Green Bond. It trades about 0.11 of its potential returns per unit of risk. Calvert Green Bond is currently generating about 0.05 per unit of risk. If you would invest 4,986 in Glg Intl Small on September 10, 2024 and sell it today you would earn a total of 3,736 from holding Glg Intl Small or generate 74.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Glg Intl Small vs. Calvert Green Bond
Performance |
Timeline |
Glg Intl Small |
Calvert Green Bond |
Glg Intl and Calvert Green Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Glg Intl and Calvert Green
The main advantage of trading using opposite Glg Intl and Calvert Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Calvert Green 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 Calvert Green will offset losses from the drop in Calvert Green's long position.Glg Intl vs. Tiaa Cref Real Estate | Glg Intl vs. Guggenheim Risk Managed | Glg Intl vs. Vy Clarion Real | Glg Intl vs. Columbia Real Estate |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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