Correlation Between Mawer Global and Capital Group
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By analyzing existing cross correlation between Mawer Global Small and Capital Group Global, you can compare the effects of market volatilities on Mawer Global and Capital Group 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 Mawer Global with a short position of Capital Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Global and Capital Group.
Diversification Opportunities for Mawer Global and Capital Group
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mawer and Capital is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Global Small and Capital Group Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Group Global and Mawer Global 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 Mawer Global Small are associated (or correlated) with Capital Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Group Global has no effect on the direction of Mawer Global i.e., Mawer Global and Capital Group go up and down completely randomly.
Pair Corralation between Mawer Global and Capital Group
Assuming the 90 days trading horizon Mawer Global Small is expected to generate 0.97 times more return on investment than Capital Group. However, Mawer Global Small is 1.03 times less risky than Capital Group. It trades about 0.31 of its potential returns per unit of risk. Capital Group Global is currently generating about 0.23 per unit of risk. If you would invest 1,535 in Mawer Global Small on November 3, 2024 and sell it today you would earn a total of 83.00 from holding Mawer Global Small or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mawer Global Small vs. Capital Group Global
Performance |
| Timeline |
| Mawer Global Small |
| Capital Group Global |
Mawer Global and Capital Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Global and Capital Group
The main advantage of trading using opposite Mawer Global and Capital Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Global position performs unexpectedly, Capital Group 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 Capital Group will offset losses from the drop in Capital Group's long position.| Mawer Global vs. Global Healthcare Income | Mawer Global vs. CI Global Alpha | Mawer Global vs. CI Global Alpha | Mawer Global vs. CDSPI Global Growth |
| Capital Group vs. Global Healthcare Income | Capital Group vs. CI Global Alpha | Capital Group vs. CI Global Alpha | Capital Group vs. CDSPI Global Growth |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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