Correlation Between Glg Intl and Rbb Fund
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Rbb Fund 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 Rbb Fund 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 Rbb Fund Trust, you can compare the effects of market volatilities on Glg Intl and Rbb Fund 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 Rbb Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Rbb Fund.
Diversification Opportunities for Glg Intl and Rbb Fund
Excellent diversification
The 3 months correlation between Glg and Rbb is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Rbb Fund Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbb Fund Trust 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 Rbb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbb Fund Trust has no effect on the direction of Glg Intl i.e., Glg Intl and Rbb Fund go up and down completely randomly.
Pair Corralation between Glg Intl and Rbb Fund
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.63 times more return on investment than Rbb Fund. However, Glg Intl Small is 1.58 times less risky than Rbb Fund. It trades about 0.04 of its potential returns per unit of risk. Rbb Fund Trust is currently generating about -0.07 per unit of risk. If you would invest 8,254 in Glg Intl Small on October 17, 2024 and sell it today you would earn a total of 191.00 from holding Glg Intl Small or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Rbb Fund Trust
Performance |
| Timeline |
| Glg Intl Small |
| Rbb Fund Trust |
Glg Intl and Rbb Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Rbb Fund
The main advantage of trading using opposite Glg Intl and Rbb Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Rbb Fund 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 Rbb Fund will offset losses from the drop in Rbb Fund's long position.| Glg Intl vs. Franklin Emerging Market | Glg Intl vs. Dws Emerging Markets | Glg Intl vs. Saat Market Growth | Glg Intl vs. Aqr Sustainable Long Short |
| Rbb Fund vs. Needham Small Cap | Rbb Fund vs. Franklin Small Cap | Rbb Fund vs. Glg Intl Small | Rbb Fund vs. Kinetics Small 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 CEOs Directory module to screen CEOs from public companies around the world.
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