Correlation Between Glg Intl and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Sumer, you can compare the effects of market volatilities on Glg Intl and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Fidelity Advisor.
Diversification Opportunities for Glg Intl and Fidelity Advisor
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Glg and Fidelity is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Fidelity Advisor Sumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Sumer 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Sumer has no effect on the direction of Glg Intl i.e., Glg Intl and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Glg Intl and Fidelity Advisor
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.81 times more return on investment than Fidelity Advisor. However, Glg Intl Small is 1.23 times less risky than Fidelity Advisor. It trades about -0.19 of its potential returns per unit of risk. Fidelity Advisor Sumer is currently generating about -0.39 per unit of risk. If you would invest 8,913 in Glg Intl Small on December 4, 2024 and sell it today you would lose (331.00) from holding Glg Intl Small or give up 3.71% 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. Fidelity Advisor Sumer
Performance |
| Timeline |
| Glg Intl Small |
| Fidelity Advisor Sumer |
Glg Intl and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Fidelity Advisor
The main advantage of trading using opposite Glg Intl and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| Glg Intl vs. Jpmorgan Emerging Markets | Glg Intl vs. Artisan Developing World | Glg Intl vs. Doubleline Emerging Markets | Glg Intl vs. Pnc Emerging Markets |
| Fidelity Advisor vs. Barings High Yield | Fidelity Advisor vs. Mesirow Financial High | Fidelity Advisor vs. Intal High Relative | Fidelity Advisor vs. Aqr Risk Parity |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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