Correlation Between Glg Intl and Nuveen Louisiana
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Nuveen Louisiana 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 Nuveen Louisiana 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 Nuveen Louisiana Municipal, you can compare the effects of market volatilities on Glg Intl and Nuveen Louisiana 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 Nuveen Louisiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Nuveen Louisiana.
Diversification Opportunities for Glg Intl and Nuveen Louisiana
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Glg and Nuveen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Nuveen Louisiana Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Louisiana Mun 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 Nuveen Louisiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Louisiana Mun has no effect on the direction of Glg Intl i.e., Glg Intl and Nuveen Louisiana go up and down completely randomly.
Pair Corralation between Glg Intl and Nuveen Louisiana
Assuming the 90 days horizon Glg Intl Small is expected to generate 4.33 times more return on investment than Nuveen Louisiana. However, Glg Intl is 4.33 times more volatile than Nuveen Louisiana Municipal. It trades about 0.08 of its potential returns per unit of risk. Nuveen Louisiana Municipal is currently generating about 0.04 per unit of risk. If you would invest 5,870 in Glg Intl Small on November 4, 2024 and sell it today you would earn a total of 3,041 from holding Glg Intl Small or generate 51.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Nuveen Louisiana Municipal
Performance |
| Timeline |
| Glg Intl Small |
| Nuveen Louisiana Mun |
Glg Intl and Nuveen Louisiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Nuveen Louisiana
The main advantage of trading using opposite Glg Intl and Nuveen Louisiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Nuveen Louisiana 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 Nuveen Louisiana will offset losses from the drop in Nuveen Louisiana's long position.| Glg Intl vs. Allianzgi Technology Fund | Glg Intl vs. Columbia Global Technology | Glg Intl vs. Red Oak Technology | Glg Intl vs. Pgim Jennison Technology |
| Nuveen Louisiana vs. Dodge Cox Stock | Nuveen Louisiana vs. Qs Large Cap | Nuveen Louisiana vs. Transamerica Large Cap | Nuveen Louisiana vs. Vest Large 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |