Correlation Between Glg Intl and Appleseed Fund
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Appleseed Fund 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 Glg Intl and Appleseed Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Appleseed Fund Appleseed, you can compare the effects of market volatilities on Glg Intl and Appleseed Fund 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 Glg Intl with a short position of Appleseed Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Appleseed Fund.
Diversification Opportunities for Glg Intl and Appleseed Fund
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glg and Appleseed is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Appleseed Fund Appleseed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appleseed Fund Appleseed and Glg Intl 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 Glg Intl Small are associated (or correlated) with Appleseed Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appleseed Fund Appleseed has no effect on the direction of Glg Intl i.e., Glg Intl and Appleseed Fund go up and down completely randomly.
Pair Corralation between Glg Intl and Appleseed Fund
Assuming the 90 days horizon Glg Intl is expected to generate 1.75 times less return on investment than Appleseed Fund. In addition to that, Glg Intl is 2.0 times more volatile than Appleseed Fund Appleseed. It trades about 0.14 of its total potential returns per unit of risk. Appleseed Fund Appleseed is currently generating about 0.49 per unit of volatility. If you would invest 1,411 in Appleseed Fund Appleseed on October 24, 2024 and sell it today you would earn a total of 60.00 from holding Appleseed Fund Appleseed or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Appleseed Fund Appleseed
Performance |
| Timeline |
| Glg Intl Small |
| Appleseed Fund Appleseed |
Glg Intl and Appleseed Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Appleseed Fund
The main advantage of trading using opposite Glg Intl and Appleseed Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Appleseed Fund 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 Appleseed Fund will offset losses from the drop in Appleseed Fund's long position.| Glg Intl vs. Ab Bond Inflation | Glg Intl vs. Asg Managed Futures | Glg Intl vs. Atac Inflation Rotation | Glg Intl vs. Ab Bond Inflation |
| Appleseed Fund vs. L Abbett Growth | Appleseed Fund vs. Qs Defensive Growth | Appleseed Fund vs. Small Pany Growth | Appleseed Fund vs. T Rowe Price |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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