Correlation Between Gmo Global and Saat Market
Can any of the company-specific risk be diversified away by investing in both Gmo Global and Saat Market 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 Gmo Global and Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Equity and Saat Market Growth, you can compare the effects of market volatilities on Gmo Global and Saat Market 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 Gmo Global with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Saat Market.
Diversification Opportunities for Gmo Global and Saat Market
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gmo and Saat is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth and Gmo Global 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 Gmo Global Equity are associated (or correlated) with Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Gmo Global i.e., Gmo Global and Saat Market go up and down completely randomly.
Pair Corralation between Gmo Global and Saat Market
Assuming the 90 days horizon Gmo Global Equity is expected to generate 1.28 times more return on investment than Saat Market. However, Gmo Global is 1.28 times more volatile than Saat Market Growth. It trades about 0.35 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.27 per unit of risk. If you would invest 2,808 in Gmo Global Equity on November 3, 2024 and sell it today you would earn a total of 128.00 from holding Gmo Global Equity or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Equity vs. Saat Market Growth
Performance |
| Timeline |
| Gmo Global Equity |
| Saat Market Growth |
Gmo Global and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Saat Market
The main advantage of trading using opposite Gmo Global and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| Gmo Global vs. Amg Managers Centersquare | Gmo Global vs. Deutsche Real Estate | Gmo Global vs. Prudential Real Estate | Gmo Global vs. Short Real Estate |
| Saat Market vs. Artisan Small Cap | Saat Market vs. Small Pany Growth | Saat Market vs. Praxis Small Cap | Saat Market vs. Smallcap Fund Fka |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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