Correlation Between Glg Intl and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Calvert 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 Glg Intl and Calvert Global 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 Calvert Global Energy, you can compare the effects of market volatilities on Glg Intl and Calvert 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 Glg Intl with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Calvert Global.
Diversification Opportunities for Glg Intl and Calvert Global
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glg and Calvert is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Glg Intl i.e., Glg Intl and Calvert Global go up and down completely randomly.
Pair Corralation between Glg Intl and Calvert Global
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.19 times more return on investment than Calvert Global. However, Glg Intl is 1.19 times more volatile than Calvert Global Energy. It trades about -0.07 of its potential returns per unit of risk. Calvert Global Energy is currently generating about -0.2 per unit of risk. If you would invest 8,675 in Glg Intl Small on October 9, 2024 and sell it today you would lose (140.00) from holding Glg Intl Small or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Calvert Global Energy
Performance |
| Timeline |
| Glg Intl Small |
| Calvert Global Energy |
Glg Intl and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Calvert Global
The main advantage of trading using opposite Glg Intl and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Calvert 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Glg Intl vs. Short Real Estate | Glg Intl vs. Pender Real Estate | Glg Intl vs. Prudential Real Estate | Glg Intl vs. Baron Real Estate |
| Calvert Global vs. Madison Diversified Income | Calvert Global vs. Tax Free Conservative Income | Calvert Global vs. Voya Solution Conservative | Calvert Global vs. Manning Napier Diversified |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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