Correlation Between Glg Intl and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Dunham Large 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 Dunham Large 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 Dunham Large Cap, you can compare the effects of market volatilities on Glg Intl and Dunham Large 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 Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Dunham Large.
Diversification Opportunities for Glg Intl and Dunham Large
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glg and Dunham is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large Cap 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 Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Glg Intl i.e., Glg Intl and Dunham Large go up and down completely randomly.
Pair Corralation between Glg Intl and Dunham Large
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.41 times more return on investment than Dunham Large. However, Glg Intl is 1.41 times more volatile than Dunham Large Cap. It trades about 0.11 of its potential returns per unit of risk. Dunham Large Cap is currently generating about 0.07 per unit of risk. If you would invest 5,011 in Glg Intl Small on September 13, 2024 and sell it today you would earn a total of 3,766 from holding Glg Intl Small or generate 75.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Dunham Large Cap
Performance |
| Timeline |
| Glg Intl Small |
| Dunham Large Cap |
Glg Intl and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Dunham Large
The main advantage of trading using opposite Glg Intl and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Dunham Large 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 Dunham Large will offset losses from the drop in Dunham Large's long position.| Glg Intl vs. Oppenheimer Main Street | Glg Intl vs. Oppenheimer Intl Small | Glg Intl vs. Oppenheimer Main Street | Glg Intl vs. Oppenheimer Global Strtgc |
| Dunham Large vs. Counterpoint Tactical Municipal | Dunham Large vs. T Rowe Price | Dunham Large vs. Blrc Sgy Mnp | Dunham Large vs. Bbh Intermediate Municipal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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