Correlation Between Glg Intl and Pender Real
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Pender Real 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 Pender Real 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 Pender Real Estate, you can compare the effects of market volatilities on Glg Intl and Pender Real 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 Pender Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Pender Real.
Diversification Opportunities for Glg Intl and Pender Real
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glg and Pender is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Pender Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pender Real Estate 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 Pender Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pender Real Estate has no effect on the direction of Glg Intl i.e., Glg Intl and Pender Real go up and down completely randomly.
Pair Corralation between Glg Intl and Pender Real
Assuming the 90 days horizon Glg Intl Small is expected to under-perform the Pender Real. In addition to that, Glg Intl is 8.67 times more volatile than Pender Real Estate. It trades about -0.01 of its total potential returns per unit of risk. Pender Real Estate is currently generating about 0.16 per unit of volatility. If you would invest 994.00 in Pender Real Estate on October 14, 2024 and sell it today you would earn a total of 11.00 from holding Pender Real Estate or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Pender Real Estate
Performance |
| Timeline |
| Glg Intl Small |
| Pender Real Estate |
Glg Intl and Pender Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Pender Real
The main advantage of trading using opposite Glg Intl and Pender Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Pender Real 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 Pender Real will offset losses from the drop in Pender Real's long position.| Glg Intl vs. Asg Global Alternatives | Glg Intl vs. Barings Global Floating | Glg Intl vs. Wisdomtree Siegel Global | Glg Intl vs. Rbc Global Equity |
| Pender Real vs. Small Pany Growth | Pender Real vs. Sp Smallcap 600 | Pender Real vs. Glg Intl Small | Pender Real 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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