Correlation Between Ms Global and Polar Capital
Can any of the company-specific risk be diversified away by investing in both Ms Global and Polar Capital 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 Ms Global and Polar Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ms Global Fixed and Polar Capital Emerging, you can compare the effects of market volatilities on Ms Global and Polar Capital 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 Ms Global with a short position of Polar Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ms Global and Polar Capital.
Diversification Opportunities for Ms Global and Polar Capital
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MFIRX and Polar is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ms Global Fixed and Polar Capital Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Capital Emerging and Ms 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 Ms Global Fixed are associated (or correlated) with Polar Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Capital Emerging has no effect on the direction of Ms Global i.e., Ms Global and Polar Capital go up and down completely randomly.
Pair Corralation between Ms Global and Polar Capital
Assuming the 90 days horizon Ms Global Fixed is expected to generate 0.16 times more return on investment than Polar Capital. However, Ms Global Fixed is 6.26 times less risky than Polar Capital. It trades about 0.25 of its potential returns per unit of risk. Polar Capital Emerging is currently generating about -0.19 per unit of risk. If you would invest 522.00 in Ms Global Fixed on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Ms Global Fixed or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ms Global Fixed vs. Polar Capital Emerging
Performance |
| Timeline |
| Ms Global Fixed |
| Polar Capital Emerging |
Ms Global and Polar Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ms Global and Polar Capital
The main advantage of trading using opposite Ms Global and Polar Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ms Global position performs unexpectedly, Polar Capital 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 Polar Capital will offset losses from the drop in Polar Capital's long position.| Ms Global vs. Putnam Convertible Incm Gwth | Ms Global vs. Advent Claymore Convertible | Ms Global vs. Rationalpier 88 Convertible | Ms Global vs. Absolute Convertible Arbitrage |
| Polar Capital vs. Thrivent Income Fund | Polar Capital vs. T Rowe Price | Polar Capital vs. Ab Bond Inflation | Polar Capital vs. Dreyfusstandish Global Fixed |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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