Correlation Between 694308KJ5 and US Global

Can any of the company-specific risk be diversified away by investing in both 694308KJ5 and US Global 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 694308KJ5 and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 615 15 JAN 33 and US Global Investors, you can compare the effects of market volatilities on 694308KJ5 and US Global 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 694308KJ5 with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308KJ5 and US Global.

Diversification Opportunities for 694308KJ5 and US Global

0.56

Correlation Coefficient

694308KJ5  US Global

Very weak diversification

The 3 months correlation between 694308KJ5 and GROW is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding PCG 615 15 JAN 33 and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and 694308KJ5 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 PCG 615 15 JAN 33 are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of 694308KJ5 i.e., 694308KJ5 and US Global go up and down completely randomly.

Pair Corralation between 694308KJ5 and US Global

Assuming the 90 days trading horizon PCG 615 15 JAN 33 is expected to under-perform the US Global. But the bond apears to be less risky and, when comparing its historical volatility, PCG 615 15 JAN 33 is 1.21 times less risky than US Global. The bond trades about -0.15 of its potential returns per unit of risk. The US Global Investors is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  255.00  in US Global Investors on September 23, 2024 and sell it today you would lose (12.00) from holding US Global Investors or give up 4.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	92.31%
Values	Daily Returns

PCG 615 15 JAN 33  vs.  US Global Investors

PCG 615 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PCG 615 15 JAN 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for PCG 615 15 JAN 33 investors.

US Global Investors

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US Global Investors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, US Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with 694308KJ5 and US Global

The main advantage of trading using opposite 694308KJ5 and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308KJ5 position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.

The idea behind PCG 615 15 JAN 33 and US Global Investors 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.