Correlation Between Glg Intl and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Barings Emerging 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 Barings Emerging 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 Barings Emerging Markets, you can compare the effects of market volatilities on Glg Intl and Barings Emerging 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 Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Barings Emerging.
Diversification Opportunities for Glg Intl and Barings Emerging
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glg and Barings is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets 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 Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Glg Intl i.e., Glg Intl and Barings Emerging go up and down completely randomly.
Pair Corralation between Glg Intl and Barings Emerging
Assuming the 90 days horizon Glg Intl Small is expected to generate 3.77 times more return on investment than Barings Emerging. However, Glg Intl is 3.77 times more volatile than Barings Emerging Markets. It trades about 0.14 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.18 per unit of risk. If you would invest 8,485 in Glg Intl Small on October 24, 2024 and sell it today you would earn a total of 199.00 from holding Glg Intl Small or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Barings Emerging Markets
Performance |
| Timeline |
| Glg Intl Small |
| Barings Emerging Markets |
Glg Intl and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Barings Emerging
The main advantage of trading using opposite Glg Intl and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging'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 |
| Barings Emerging vs. Science Technology Fund | Barings Emerging vs. Firsthand Technology Opportunities | Barings Emerging vs. Vanguard Information Technology | Barings Emerging vs. Towpath Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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