Correlation Between Glenmede International and Secured Options
Can any of the company-specific risk be diversified away by investing in both Glenmede International and Secured Options 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 Glenmede International and Secured Options into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glenmede International Secured and Secured Options Portfolio, you can compare the effects of market volatilities on Glenmede International and Secured Options 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 Glenmede International with a short position of Secured Options. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glenmede International and Secured Options.
Diversification Opportunities for Glenmede International and Secured Options
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glenmede and Secured is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Glenmede International Secured and Secured Options Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secured Options Portfolio and Glenmede International 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 Glenmede International Secured are associated (or correlated) with Secured Options. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secured Options Portfolio has no effect on the direction of Glenmede International i.e., Glenmede International and Secured Options go up and down completely randomly.
Pair Corralation between Glenmede International and Secured Options
Assuming the 90 days horizon Glenmede International is expected to generate 1.75 times less return on investment than Secured Options. In addition to that, Glenmede International is 1.28 times more volatile than Secured Options Portfolio. It trades about 0.16 of its total potential returns per unit of risk. Secured Options Portfolio is currently generating about 0.36 per unit of volatility. If you would invest 1,497 in Secured Options Portfolio on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Secured Options Portfolio or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Glenmede International Secured vs. Secured Options Portfolio
Performance |
| Timeline |
| Glenmede International |
| Secured Options Portfolio |
Glenmede International and Secured Options Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glenmede International and Secured Options
The main advantage of trading using opposite Glenmede International and Secured Options positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glenmede International position performs unexpectedly, Secured Options 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 Secured Options will offset losses from the drop in Secured Options' long position.| Glenmede International vs. Artisan Global Unconstrained | Glenmede International vs. Ms Global Fixed | Glenmede International vs. Kinetics Global Fund | Glenmede International vs. Ab Global Risk |
| Secured Options vs. Small Cap Equity | Secured Options vs. Matthews Pacific Tiger | Secured Options vs. Large Cap E | Secured Options vs. Longshort Portfolio Longshort |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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