Correlation Between Glg Intl and Pimco Foreign
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Pimco Foreign 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 Pimco Foreign 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 Pimco Foreign Bond, you can compare the effects of market volatilities on Glg Intl and Pimco Foreign 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 Pimco Foreign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Pimco Foreign.
Diversification Opportunities for Glg Intl and Pimco Foreign
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glg and Pimco is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Pimco Foreign Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Foreign Bond 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 Pimco Foreign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Foreign Bond has no effect on the direction of Glg Intl i.e., Glg Intl and Pimco Foreign go up and down completely randomly.
Pair Corralation between Glg Intl and Pimco Foreign
If you would invest 0.00 in Pimco Foreign Bond on December 9, 2024 and sell it today you would earn a total of 0.00 from holding Pimco Foreign Bond or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Glg Intl Small vs. Pimco Foreign Bond
Performance |
| Timeline |
| Glg Intl Small |
| Pimco Foreign Bond |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Glg Intl and Pimco Foreign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Pimco Foreign
The main advantage of trading using opposite Glg Intl and Pimco Foreign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Pimco Foreign 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 Pimco Foreign will offset losses from the drop in Pimco Foreign's long position.| Glg Intl vs. Calvert Global Energy | ||
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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