Correlation Between Mutual Of and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Mutual Of and Glg Intl 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 Mutual Of and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Glg Intl Small, you can compare the effects of market volatilities on Mutual Of and Glg Intl 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 Mutual Of with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Glg Intl.
Diversification Opportunities for Mutual Of and Glg Intl
Good diversification
The 3 months correlation between Mutual and Glg is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small and Mutual Of 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 Mutual Of America are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Mutual Of i.e., Mutual Of and Glg Intl go up and down completely randomly.
Pair Corralation between Mutual Of and Glg Intl
Assuming the 90 days horizon Mutual Of America is expected to generate 0.86 times more return on investment than Glg Intl. However, Mutual Of America is 1.16 times less risky than Glg Intl. It trades about -0.08 of its potential returns per unit of risk. Glg Intl Small is currently generating about -0.12 per unit of risk. If you would invest 1,453 in Mutual Of America on December 3, 2024 and sell it today you would lose (20.00) from holding Mutual Of America or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. Glg Intl Small
Performance |
| Timeline |
| Mutual Of America |
| Glg Intl Small |
Mutual Of and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Glg Intl
The main advantage of trading using opposite Mutual Of and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Mutual Of vs. Harbor Diversified International | Mutual Of vs. Madison Diversified Income | Mutual Of vs. Stone Ridge Diversified | Mutual Of vs. Diversified Bond Fund |
| Glg Intl vs. Us Government Securities | Glg Intl vs. Franklin Adjustable Government | Glg Intl vs. Government Securities Fund | Glg Intl vs. Virtus Seix Government |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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