Correlation Between Bogle Small and Summit Global
Can any of the company-specific risk be diversified away by investing in both Bogle Small and Summit 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 Bogle Small and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bogle Small Cap and Summit Global Investments, you can compare the effects of market volatilities on Bogle Small and Summit 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 Bogle Small with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bogle Small and Summit Global.
Diversification Opportunities for Bogle Small and Summit Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bogle and Summit is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bogle Small Cap and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Bogle Small 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 Bogle Small Cap are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Bogle Small i.e., Bogle Small and Summit Global go up and down completely randomly.
Pair Corralation between Bogle Small and Summit Global
Assuming the 90 days horizon Bogle Small Cap is expected to generate 1.92 times more return on investment than Summit Global. However, Bogle Small is 1.92 times more volatile than Summit Global Investments. It trades about 0.09 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.16 per unit of risk. If you would invest 3,030 in Bogle Small Cap on September 3, 2024 and sell it today you would earn a total of 421.00 from holding Bogle Small Cap or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bogle Small Cap vs. Summit Global Investments
Performance |
| Timeline |
| Bogle Small Cap |
| Summit Global Investments |
Bogle Small and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bogle Small and Summit Global
The main advantage of trading using opposite Bogle Small and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bogle Small position performs unexpectedly, Summit 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 Summit Global will offset losses from the drop in Summit Global's long position.| Bogle Small vs. Aberdeen Select International | Bogle Small vs. Artisan International Small | Bogle Small vs. Tweedy Browne Global | Bogle Small vs. Litman Gregory Masters |
| Summit Global vs. Summit Global Investments | Summit Global vs. Summit Global Investments | Summit Global vs. Siit Dynamic Asset | Summit Global vs. Boston Partners All Cap |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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