Correlation Between Glg Intl and Kinetics Market
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Kinetics Market 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 Kinetics Market 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 Kinetics Market Opportunities, you can compare the effects of market volatilities on Glg Intl and Kinetics Market 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 Kinetics Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Kinetics Market.
Diversification Opportunities for Glg Intl and Kinetics Market
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glg and Kinetics is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Kinetics Market Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Market Oppo 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 Kinetics Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Market Oppo has no effect on the direction of Glg Intl i.e., Glg Intl and Kinetics Market go up and down completely randomly.
Pair Corralation between Glg Intl and Kinetics Market
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.3 times more return on investment than Kinetics Market. However, Glg Intl Small is 3.38 times less risky than Kinetics Market. It trades about 0.1 of its potential returns per unit of risk. Kinetics Market Opportunities is currently generating about -0.13 per unit of risk. If you would invest 8,169 in Glg Intl Small on September 19, 2024 and sell it today you would earn a total of 175.00 from holding Glg Intl Small or generate 2.14% 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. Kinetics Market Opportunities
Performance |
| Timeline |
| Glg Intl Small |
| Kinetics Market Oppo |
Glg Intl and Kinetics Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Kinetics Market
The main advantage of trading using opposite Glg Intl and Kinetics Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Kinetics Market 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 Kinetics Market will offset losses from the drop in Kinetics Market's long position.| Glg Intl vs. Balanced Fund Investor | Glg Intl vs. Qs Large Cap | Glg Intl vs. Red Oak Technology | Glg Intl vs. Materials Portfolio Fidelity |
| Kinetics Market vs. Morningstar Municipal Bond | Kinetics Market vs. T Rowe Price | Kinetics Market vs. Nuveen Minnesota Municipal | Kinetics Market vs. Blrc Sgy Mnp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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