Correlation Between Glg Intl and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref International Equity, you can compare the effects of market volatilities on Glg Intl and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Tiaa Cref.
Diversification Opportunities for Glg Intl and Tiaa Cref
Good diversification
The 3 months correlation between Glg and Tiaa is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Tiaa Cref International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref International has no effect on the direction of Glg Intl i.e., Glg Intl and Tiaa Cref go up and down completely randomly.
Pair Corralation between Glg Intl and Tiaa Cref
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.09 times more return on investment than Tiaa Cref. However, Glg Intl is 1.09 times more volatile than Tiaa Cref International Equity. It trades about 0.1 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about -0.1 per unit of risk. If you would invest 8,430 in Glg Intl Small on September 13, 2024 and sell it today you would earn a total of 347.00 from holding Glg Intl Small or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Glg Intl Small vs. Tiaa Cref International Equity
Performance |
| Timeline |
| Glg Intl Small |
| Tiaa Cref International |
Glg Intl and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Tiaa Cref
The main advantage of trading using opposite Glg Intl and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Glg Intl vs. Oppenheimer Main Street | Glg Intl vs. Oppenheimer Intl Small | Glg Intl vs. Oppenheimer Main Street | Glg Intl vs. Oppenheimer Global Strtgc |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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