Correlation Between Glg Intl and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Oppenheimer Global 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 Oppenheimer Global 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 Oppenheimer Global, you can compare the effects of market volatilities on Glg Intl and Oppenheimer Global 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 Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Oppenheimer Global.
Diversification Opportunities for Glg Intl and Oppenheimer Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glg and Oppenheimer is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Oppenheimer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global 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 Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Glg Intl i.e., Glg Intl and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Glg Intl and Oppenheimer Global
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.04 times more return on investment than Oppenheimer Global. However, Glg Intl is 1.04 times more volatile than Oppenheimer Global. It trades about 0.19 of its potential returns per unit of risk. Oppenheimer Global is currently generating about 0.07 per unit of risk. If you would invest 8,094 in Glg Intl Small on September 1, 2024 and sell it today you would earn a total of 273.00 from holding Glg Intl Small or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Glg Intl Small vs. Oppenheimer Global
Performance |
| Timeline |
| Glg Intl Small |
| Oppenheimer Global |
Glg Intl and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Oppenheimer Global
The main advantage of trading using opposite Glg Intl and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Oppenheimer Global 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 Oppenheimer Global will offset losses from the drop in Oppenheimer Global's long position.| Glg Intl vs. Icon Natural Resources | Glg Intl vs. Short Oil Gas | Glg Intl vs. Clearbridge Energy Mlp | Glg Intl vs. Oil Gas Ultrasector |
| Oppenheimer Global vs. Columbia Global Technology | Oppenheimer Global vs. Technology Ultrasector Profund | Oppenheimer Global vs. Biotechnology Fund Class | Oppenheimer Global vs. Hennessy Technology Fund |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |