Correlation Between Glg Intl and Quantified Managed
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Quantified Managed 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 Quantified Managed 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 Quantified Managed Income, you can compare the effects of market volatilities on Glg Intl and Quantified Managed 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 Quantified Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Quantified Managed.
Diversification Opportunities for Glg Intl and Quantified Managed
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glg and Quantified is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Quantified Managed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantified Managed Income 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 Quantified Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantified Managed Income has no effect on the direction of Glg Intl i.e., Glg Intl and Quantified Managed go up and down completely randomly.
Pair Corralation between Glg Intl and Quantified Managed
Assuming the 90 days horizon Glg Intl Small is expected to generate 2.77 times more return on investment than Quantified Managed. However, Glg Intl is 2.77 times more volatile than Quantified Managed Income. It trades about 0.09 of its potential returns per unit of risk. Quantified Managed Income is currently generating about 0.04 per unit of risk. If you would invest 6,968 in Glg Intl Small on September 14, 2024 and sell it today you would earn a total of 1,779 from holding Glg Intl Small or generate 25.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Quantified Managed Income
Performance |
| Timeline |
| Glg Intl Small |
| Quantified Managed Income |
Glg Intl and Quantified Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Quantified Managed
The main advantage of trading using opposite Glg Intl and Quantified Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Quantified Managed 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 Quantified Managed will offset losses from the drop in Quantified Managed's long position.| Glg Intl vs. Artisan Emerging Markets | Glg Intl vs. Ep Emerging Markets | Glg Intl vs. Aqr Long Short Equity | Glg Intl vs. Siit Emerging Markets |
| Quantified Managed vs. Oklahoma Municipal Fund | Quantified Managed vs. T Rowe Price | Quantified Managed vs. Transamerica Intermediate Muni | Quantified Managed vs. California High Yield Municipal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |