Correlation Between Glg Intl and Tiaa-cref Small-cap
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Tiaa-cref Small-cap 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 Small-cap 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 Small Cap Equity, you can compare the effects of market volatilities on Glg Intl and Tiaa-cref Small-cap 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 Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Tiaa-cref Small-cap.
Diversification Opportunities for Glg Intl and Tiaa-cref Small-cap
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glg and Tiaa-cref is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Tiaa Cref Small Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Small-cap 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 Small-cap. 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 Small-cap has no effect on the direction of Glg Intl i.e., Glg Intl and Tiaa-cref Small-cap go up and down completely randomly.
Pair Corralation between Glg Intl and Tiaa-cref Small-cap
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.55 times more return on investment than Tiaa-cref Small-cap. However, Glg Intl Small is 1.8 times less risky than Tiaa-cref Small-cap. It trades about 0.13 of its potential returns per unit of risk. Tiaa Cref Small Cap Equity is currently generating about -0.19 per unit of risk. If you would invest 8,367 in Glg Intl Small on October 30, 2024 and sell it today you would earn a total of 422.00 from holding Glg Intl Small or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.44% |
| Values | Daily Returns |
Glg Intl Small vs. Tiaa Cref Small Cap Equity
Performance |
| Timeline |
| Glg Intl Small |
| Tiaa-cref Small-cap |
Glg Intl and Tiaa-cref Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Tiaa-cref Small-cap
The main advantage of trading using opposite Glg Intl and Tiaa-cref Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Tiaa-cref Small-cap 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 Small-cap will offset losses from the drop in Tiaa-cref Small-cap's long position.| Glg Intl vs. John Hancock Financial | Glg Intl vs. Vanguard Financials Index | Glg Intl vs. Gabelli Global Financial | Glg Intl vs. Hennessy Large Cap |
| Tiaa-cref Small-cap vs. Mirova Global Green | Tiaa-cref Small-cap vs. Ab Global Bond | Tiaa-cref Small-cap vs. Asg Global Alternatives | Tiaa-cref Small-cap vs. Wisdomtree Siegel Global |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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