Correlation Between Glg Intl and Aggressive Investors
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Aggressive Investors 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 Aggressive Investors 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 Aggressive Investors 1, you can compare the effects of market volatilities on Glg Intl and Aggressive Investors 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 Aggressive Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Aggressive Investors.
Diversification Opportunities for Glg Intl and Aggressive Investors
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glg and Aggressive is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Aggressive Investors 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Investors 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 Aggressive Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Investors has no effect on the direction of Glg Intl i.e., Glg Intl and Aggressive Investors go up and down completely randomly.
Pair Corralation between Glg Intl and Aggressive Investors
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.79 times more return on investment than Aggressive Investors. However, Glg Intl Small is 1.27 times less risky than Aggressive Investors. It trades about 0.36 of its potential returns per unit of risk. Aggressive Investors 1 is currently generating about 0.23 per unit of risk. If you would invest 8,346 in Glg Intl Small on November 3, 2024 and sell it today you would earn a total of 565.00 from holding Glg Intl Small or generate 6.77% 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. Aggressive Investors 1
Performance |
| Timeline |
| Glg Intl Small |
| Aggressive Investors |
Glg Intl and Aggressive Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Aggressive Investors
The main advantage of trading using opposite Glg Intl and Aggressive Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Aggressive Investors 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 Aggressive Investors will offset losses from the drop in Aggressive Investors' long position.| Glg Intl vs. Hunter Small Cap | Glg Intl vs. Ab Small Cap | Glg Intl vs. Df Dent Small | Glg Intl vs. Needham Small Cap |
| Aggressive Investors vs. Invesco Gold Special | Aggressive Investors vs. Great West Goldman Sachs | Aggressive Investors vs. Gold Portfolio Fidelity | Aggressive Investors vs. James Balanced Golden |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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