Correlation Between James Balanced: and Glg Intl
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Glg Intl 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 James Balanced: and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Glg Intl Small, you can compare the effects of market volatilities on James Balanced: and Glg Intl 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 James Balanced: with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Glg Intl.
Diversification Opportunities for James Balanced: and Glg Intl
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between James and Glg is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small and James Balanced: 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 James Balanced Golden are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of James Balanced: i.e., James Balanced: and Glg Intl go up and down completely randomly.
Pair Corralation between James Balanced: and Glg Intl
Assuming the 90 days horizon James Balanced: is expected to generate 1.75 times less return on investment than Glg Intl. But when comparing it to its historical volatility, James Balanced Golden is 1.72 times less risky than Glg Intl. It trades about 0.1 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,344 in Glg Intl Small on October 19, 2024 and sell it today you would earn a total of 143.00 from holding Glg Intl Small or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
James Balanced Golden vs. Glg Intl Small
Performance |
| Timeline |
| James Balanced Golden |
| Glg Intl Small |
James Balanced: and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Glg Intl
The main advantage of trading using opposite James Balanced: and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Glg Intl vs. International Investors Gold | Glg Intl vs. James Balanced Golden | Glg Intl vs. Global Gold Fund | Glg Intl vs. Gamco Global Gold |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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