Correlation Between 361 Global and Global Real
Can any of the company-specific risk be diversified away by investing in both 361 Global and Global Real 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 361 Global and Global Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and Global Real Estate, you can compare the effects of market volatilities on 361 Global and Global Real 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 361 Global with a short position of Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and Global Real.
Diversification Opportunities for 361 Global and Global Real
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 361 and Global is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and Global Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Real Estate and 361 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 361 Global Longshort are associated (or correlated) with Global Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Real Estate has no effect on the direction of 361 Global i.e., 361 Global and Global Real go up and down completely randomly.
Pair Corralation between 361 Global and Global Real
Assuming the 90 days horizon 361 Global Longshort is expected to generate 0.51 times more return on investment than Global Real. However, 361 Global Longshort is 1.96 times less risky than Global Real. It trades about -0.38 of its potential returns per unit of risk. Global Real Estate is currently generating about -0.38 per unit of risk. If you would invest 1,281 in 361 Global Longshort on September 20, 2024 and sell it today you would lose (55.00) from holding 361 Global Longshort or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
361 Global Longshort vs. Global Real Estate
Performance |
| Timeline |
| 361 Global Longshort |
| Global Real Estate |
361 Global and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and Global Real
The main advantage of trading using opposite 361 Global and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, Global Real 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 Global Real will offset losses from the drop in Global Real's long position.| 361 Global vs. Swan Defined Risk | 361 Global vs. Boston Partners Longshort | 361 Global vs. Aqr Long Short Equity |
| Global Real vs. Ab Global Risk | Global Real vs. 361 Global Longshort | Global Real vs. Legg Mason Global | Global Real vs. Investec Global Franchise |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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