Correlation Between Glg Intl and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Glg Intl and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Strategic Asset.
Diversification Opportunities for Glg Intl and Strategic Asset
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glg and Strategic is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Glg Intl i.e., Glg Intl and Strategic Asset go up and down completely randomly.
Pair Corralation between Glg Intl and Strategic Asset
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.59 times more return on investment than Strategic Asset. However, Glg Intl is 1.59 times more volatile than Strategic Asset Management. It trades about 0.22 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.22 per unit of risk. If you would invest 7,704 in Glg Intl Small on September 8, 2024 and sell it today you would earn a total of 1,018 from holding Glg Intl Small or generate 13.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.46% |
Values | Daily Returns |
Glg Intl Small vs. Strategic Asset Management
Performance |
Timeline |
Glg Intl Small |
Strategic Asset Mana |
Glg Intl and Strategic Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Glg Intl and Strategic Asset
The main advantage of trading using opposite Glg Intl and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.Glg Intl vs. Aqr Large Cap | Glg Intl vs. Guidemark Large Cap | Glg Intl vs. American Mutual Fund | Glg Intl vs. Smead Value Fund |
Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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