Correlation Between Glg Intl and Monteagle Enhanced
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Monteagle Enhanced 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 Monteagle Enhanced 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 Monteagle Enhanced Equity, you can compare the effects of market volatilities on Glg Intl and Monteagle Enhanced 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 Monteagle Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Monteagle Enhanced.
Diversification Opportunities for Glg Intl and Monteagle Enhanced
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glg and Monteagle is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Monteagle Enhanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monteagle Enhanced Equity 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 Monteagle Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monteagle Enhanced Equity has no effect on the direction of Glg Intl i.e., Glg Intl and Monteagle Enhanced go up and down completely randomly.
Pair Corralation between Glg Intl and Monteagle Enhanced
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.17 times more return on investment than Monteagle Enhanced. However, Glg Intl is 1.17 times more volatile than Monteagle Enhanced Equity. It trades about -0.11 of its potential returns per unit of risk. Monteagle Enhanced Equity is currently generating about -0.33 per unit of risk. If you would invest 8,660 in Glg Intl Small on October 11, 2024 and sell it today you would lose (221.00) from holding Glg Intl Small or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Glg Intl Small vs. Monteagle Enhanced Equity
Performance |
| Timeline |
| Glg Intl Small |
| Monteagle Enhanced Equity |
Glg Intl and Monteagle Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Monteagle Enhanced
The main advantage of trading using opposite Glg Intl and Monteagle Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Monteagle Enhanced 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 Monteagle Enhanced will offset losses from the drop in Monteagle Enhanced's long position.| Glg Intl vs. Ab High Income | Glg Intl vs. Catalystsmh High Income | Glg Intl vs. Mesirow Financial High | Glg Intl vs. Pace High Yield |
| Monteagle Enhanced vs. Rbc Small Cap | Monteagle Enhanced vs. Kinetics Small Cap | Monteagle Enhanced vs. Glg Intl Small | Monteagle Enhanced vs. Franklin Small Cap |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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