Correlation Between Glg Intl and Dreyfus Bond
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Dreyfus Bond 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 Dreyfus Bond 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 Dreyfus Bond Market, you can compare the effects of market volatilities on Glg Intl and Dreyfus Bond 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 Dreyfus Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Dreyfus Bond.
Diversification Opportunities for Glg Intl and Dreyfus Bond
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glg and Dreyfus is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Dreyfus Bond Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Bond Market 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 Dreyfus Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Bond Market has no effect on the direction of Glg Intl i.e., Glg Intl and Dreyfus Bond go up and down completely randomly.
Pair Corralation between Glg Intl and Dreyfus Bond
Assuming the 90 days horizon Glg Intl Small is expected to under-perform the Dreyfus Bond. In addition to that, Glg Intl is 3.95 times more volatile than Dreyfus Bond Market. It trades about -0.21 of its total potential returns per unit of risk. Dreyfus Bond Market is currently generating about -0.4 per unit of volatility. If you would invest 895.00 in Dreyfus Bond Market on October 14, 2024 and sell it today you would lose (18.00) from holding Dreyfus Bond Market or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Dreyfus Bond Market
Performance |
| Timeline |
| Glg Intl Small |
| Dreyfus Bond Market |
Glg Intl and Dreyfus Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Dreyfus Bond
The main advantage of trading using opposite Glg Intl and Dreyfus Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Dreyfus Bond 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 Dreyfus Bond will offset losses from the drop in Dreyfus Bond's long position.| Glg Intl vs. Asg Global Alternatives | Glg Intl vs. Barings Global Floating | Glg Intl vs. Wisdomtree Siegel Global | Glg Intl vs. Rbc Global Equity |
| Dreyfus Bond vs. Artisan Small Cap | Dreyfus Bond vs. Cardinal Small Cap | Dreyfus Bond vs. Sp Smallcap 600 | Dreyfus Bond vs. Glg Intl Small |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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