Correlation Between Victory Munder and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Victory Munder 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 Victory Munder and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Munder Mid Cap and Glg Intl Small, you can compare the effects of market volatilities on Victory Munder 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 Victory Munder with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Munder and Glg Intl.
Diversification Opportunities for Victory Munder and Glg Intl
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Victory and Glg is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Victory Munder Mid Cap 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 Victory Munder 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 Victory Munder Mid Cap 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 Victory Munder i.e., Victory Munder and Glg Intl go up and down completely randomly.
Pair Corralation between Victory Munder and Glg Intl
Assuming the 90 days horizon Victory Munder Mid Cap is expected to generate 0.87 times more return on investment than Glg Intl. However, Victory Munder Mid Cap is 1.15 times less risky than Glg Intl. It trades about 0.32 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.14 per unit of risk. If you would invest 1,241 in Victory Munder Mid Cap on October 24, 2024 and sell it today you would earn a total of 63.00 from holding Victory Munder Mid Cap or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Victory Munder Mid Cap vs. Glg Intl Small
Performance |
| Timeline |
| Victory Munder Mid |
| Glg Intl Small |
Victory Munder and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Munder and Glg Intl
The main advantage of trading using opposite Victory Munder and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Munder 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.| Victory Munder vs. Glg Intl Small | Victory Munder vs. L Abbett Growth | Victory Munder vs. Sp Smallcap 600 | Victory Munder vs. Needham Aggressive Growth |
| Glg Intl vs. Ab Bond Inflation | Glg Intl vs. Asg Managed Futures | Glg Intl vs. Atac Inflation Rotation | Glg Intl vs. Ab Bond Inflation |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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