Correlation Between Glg Intl and Mfs Georgia
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Mfs Georgia 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 Mfs Georgia 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 Mfs Georgia Municipal, you can compare the effects of market volatilities on Glg Intl and Mfs Georgia 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 Mfs Georgia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Mfs Georgia.
Diversification Opportunities for Glg Intl and Mfs Georgia
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glg and Mfs is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Mfs Georgia Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Georgia Municipal 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 Mfs Georgia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Georgia Municipal has no effect on the direction of Glg Intl i.e., Glg Intl and Mfs Georgia go up and down completely randomly.
Pair Corralation between Glg Intl and Mfs Georgia
Assuming the 90 days horizon Glg Intl Small is expected to generate 2.98 times more return on investment than Mfs Georgia. However, Glg Intl is 2.98 times more volatile than Mfs Georgia Municipal. It trades about 0.08 of its potential returns per unit of risk. Mfs Georgia Municipal is currently generating about -0.04 per unit of risk. If you would invest 8,201 in Glg Intl Small on October 24, 2024 and sell it today you would earn a total of 483.00 from holding Glg Intl Small or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Glg Intl Small vs. Mfs Georgia Municipal
Performance |
| Timeline |
| Glg Intl Small |
| Mfs Georgia Municipal |
Glg Intl and Mfs Georgia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Mfs Georgia
The main advantage of trading using opposite Glg Intl and Mfs Georgia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Mfs Georgia 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 Mfs Georgia will offset losses from the drop in Mfs Georgia's long position.| Glg Intl vs. Ab Bond Inflation | Glg Intl vs. Asg Managed Futures | Glg Intl vs. Atac Inflation Rotation | Glg Intl vs. Ab Bond Inflation |
| Mfs Georgia vs. Lkcm Small Cap | Mfs Georgia vs. Glg Intl Small | Mfs Georgia vs. Qs Defensive Growth | Mfs Georgia vs. Sp Smallcap 600 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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