Correlation Between Boston Partners and 361 Global
Can any of the company-specific risk be diversified away by investing in both Boston Partners and 361 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 361 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and 361 Global Longshort, you can compare the effects of market volatilities on Boston Partners and 361 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 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and 361 Global.
Diversification Opportunities for Boston Partners and 361 Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boston and 361 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort 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 Longshort are associated (or correlated) with 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Boston Partners i.e., Boston Partners and 361 Global go up and down completely randomly.
Pair Corralation between Boston Partners and 361 Global
Assuming the 90 days horizon Boston Partners is expected to generate 1.05 times less return on investment than 361 Global. In addition to that, Boston Partners is 1.46 times more volatile than 361 Global Longshort. It trades about 0.07 of its total potential returns per unit of risk. 361 Global Longshort is currently generating about 0.1 per unit of volatility. If you would invest 1,144 in 361 Global Longshort on September 3, 2024 and sell it today you would earn a total of 138.00 from holding 361 Global Longshort or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. 361 Global Longshort
Performance |
| Timeline |
| Boston Partners Longshort |
| 361 Global Longshort |
Boston Partners and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and 361 Global
The main advantage of trading using opposite Boston Partners and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, 361 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 361 Global will offset losses from the drop in 361 Global's long position.| Boston Partners vs. Aqr Managed Futures | Boston Partners vs. Neuberger Berman Long | Boston Partners vs. Asg Managed Futures | Boston Partners vs. Marketfield Fund Marketfield |
| 361 Global vs. Volumetric Fund Volumetric | 361 Global vs. Fa 529 Aggressive | 361 Global vs. Bbh Intermediate Municipal | 361 Global vs. Qs 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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