Correlation Between Glg Intl and Federated Short
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Federated Short 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 Federated Short 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 Federated Short Term Income, you can compare the effects of market volatilities on Glg Intl and Federated Short 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 Federated Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Federated Short.
Diversification Opportunities for Glg Intl and Federated Short
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glg and Federated is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Federated Short Term Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Short Term 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 Federated Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Short Term has no effect on the direction of Glg Intl i.e., Glg Intl and Federated Short go up and down completely randomly.
Pair Corralation between Glg Intl and Federated Short
Assuming the 90 days horizon Glg Intl Small is expected to generate 6.69 times more return on investment than Federated Short. However, Glg Intl is 6.69 times more volatile than Federated Short Term Income. It trades about 0.15 of its potential returns per unit of risk. Federated Short Term Income is currently generating about 0.18 per unit of risk. If you would invest 8,560 in Glg Intl Small on October 25, 2024 and sell it today you would earn a total of 216.00 from holding Glg Intl Small or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Federated Short Term Income
Performance |
| Timeline |
| Glg Intl Small |
| Federated Short Term |
Glg Intl and Federated Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Federated Short
The main advantage of trading using opposite Glg Intl and Federated Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Federated Short 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 Federated Short will offset losses from the drop in Federated Short's long position.| Glg Intl vs. Siit Ultra Short | Glg Intl vs. Vela Short Duration | Glg Intl vs. Prudential Short Duration | Glg Intl vs. Nuveen Short Duration High |
| Federated Short vs. Glg Intl Small | Federated Short vs. Kinetics Small Cap | Federated Short vs. Nuveen Small Cap | Federated Short vs. Goldman Sachs Smallmid |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |