Correlation Between Global E and Cbre Clarion

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

By analyzing existing cross correlation between Global E Portfolio and Cbre Clarion Global, you can compare the effects of market volatilities on Global E and Cbre Clarion 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 Global E with a short position of Cbre Clarion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Cbre Clarion.

Diversification Opportunities for Global E and Cbre Clarion

0.0

Correlation Coefficient

Global E  Cbre Clarion

Pay attention - limited upside

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

Pair Corralation between Global E and Cbre Clarion

If you would invest  0.00  in Global E Portfolio on September 11, 2024 and sell it today you would earn a total of  0.00  from holding Global E Portfolio or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Global E Portfolio  vs.  Cbre Clarion Global

Global E Portfolio

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Global E Portfolio has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Global E is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cbre Clarion Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cbre Clarion Global has generated negative risk-adjusted returns adding no value to fund investors. Even with latest unsteady performance, the Fund's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the fund retail investors.

Pair Trading with Global E and Cbre Clarion

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

The idea behind Global E Portfolio and Cbre Clarion Global 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.