Correlation Between Glg Intl and Shelton Core
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Shelton Core 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 Shelton Core 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 Shelton E Value, you can compare the effects of market volatilities on Glg Intl and Shelton Core 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 Shelton Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Shelton Core.
Diversification Opportunities for Glg Intl and Shelton Core
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glg and Shelton is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Shelton E Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton E Value 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 Shelton Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton E Value has no effect on the direction of Glg Intl i.e., Glg Intl and Shelton Core go up and down completely randomly.
Pair Corralation between Glg Intl and Shelton Core
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.79 times more return on investment than Shelton Core. However, Glg Intl is 1.79 times more volatile than Shelton E Value. It trades about 0.09 of its potential returns per unit of risk. Shelton E Value is currently generating about 0.1 per unit of risk. If you would invest 5,840 in Glg Intl Small on November 7, 2024 and sell it today you would earn a total of 3,167 from holding Glg Intl Small or generate 54.23% 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. Shelton E Value
Performance |
| Timeline |
| Glg Intl Small |
| Shelton E Value |
Glg Intl and Shelton Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Shelton Core
The main advantage of trading using opposite Glg Intl and Shelton Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Shelton Core 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 Shelton Core will offset losses from the drop in Shelton Core's long position.| Glg Intl vs. Short Duration Inflation | Glg Intl vs. The Hartford Inflation | Glg Intl vs. Cref Inflation Linked Bond | Glg Intl vs. Abbey Capital Futures |
| Shelton Core vs. Us Global Investors | Shelton Core vs. Barings Global Floating | Shelton Core vs. Qs Global Equity | Shelton Core vs. Ab Global Bond |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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