Correlation Between Glg Intl and Df Dent
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Df Dent 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 Df Dent 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 Df Dent Small, you can compare the effects of market volatilities on Glg Intl and Df Dent 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 Df Dent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Df Dent.
Diversification Opportunities for Glg Intl and Df Dent
Poor diversification
The 3 months correlation between Glg and DFDSX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Df Dent Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Df Dent Small 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 Df Dent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Df Dent Small has no effect on the direction of Glg Intl i.e., Glg Intl and Df Dent go up and down completely randomly.
Pair Corralation between Glg Intl and Df Dent
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.85 times more return on investment than Df Dent. However, Glg Intl Small is 1.17 times less risky than Df Dent. It trades about 0.43 of its potential returns per unit of risk. Df Dent Small is currently generating about 0.17 per unit of risk. If you would invest 8,179 in Glg Intl Small on September 16, 2024 and sell it today you would earn a total of 539.00 from holding Glg Intl Small or generate 6.59% 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. Df Dent Small
Performance |
| Timeline |
| Glg Intl Small |
| Df Dent Small |
Glg Intl and Df Dent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Df Dent
The main advantage of trading using opposite Glg Intl and Df Dent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Df Dent 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 Df Dent will offset losses from the drop in Df Dent'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 |
| Df Dent vs. Df Dent Premier | Df Dent vs. Df Dent Midcap | Df Dent vs. Df Dent Midcap | Df Dent vs. Df Dent Midcap |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |