Correlation Between Boston Partners and Summit Global
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners All Cap and Summit Global Investments, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Summit Global.
Diversification Opportunities for Boston Partners and Summit Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Summit is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners All 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 Boston Partners 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 Boston Partners All 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 Boston Partners i.e., Boston Partners and Summit Global go up and down completely randomly.
Pair Corralation between Boston Partners and Summit Global
Assuming the 90 days horizon Boston Partners is expected to generate 1.41 times less return on investment than Summit Global. In addition to that, Boston Partners is 1.2 times more volatile than Summit Global Investments. It trades about 0.25 of its total potential returns per unit of risk. Summit Global Investments is currently generating about 0.42 per unit of volatility. If you would invest 2,124 in Summit Global Investments on September 3, 2024 and sell it today you would earn a total of 146.00 from holding Summit Global Investments or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners All Cap vs. Summit Global Investments
Performance |
| Timeline |
| Boston Partners All |
| Summit Global Investments |
Boston Partners and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Summit Global
The main advantage of trading using opposite Boston Partners and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Vanguard Value Index | Boston Partners vs. Dodge Cox Stock | Boston Partners vs. American Funds American | Boston Partners vs. American Funds American |
| Summit Global vs. Summit Global Investments | Summit Global vs. Siit Dynamic Asset | Summit Global vs. Aqr Large Cap | Summit Global vs. Aqr Large 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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