Correlation Between Prudential Real and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Prudential Real 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 Prudential Real and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Real Estate and Glg Intl Small, you can compare the effects of market volatilities on Prudential Real 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 Prudential Real with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Real and Glg Intl.
Diversification Opportunities for Prudential Real and Glg Intl
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prudential and Glg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Real Estate 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 Prudential Real 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 Prudential Real Estate 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 Prudential Real i.e., Prudential Real and Glg Intl go up and down completely randomly.
Pair Corralation between Prudential Real and Glg Intl
Assuming the 90 days horizon Prudential Real is expected to generate 7.68 times less return on investment than Glg Intl. In addition to that, Prudential Real is 1.24 times more volatile than Glg Intl Small. It trades about 0.02 of its total potential returns per unit of risk. Glg Intl Small is currently generating about 0.19 per unit of volatility. If you would invest 8,485 in Glg Intl Small on October 24, 2024 and sell it today you would earn a total of 291.00 from holding Glg Intl Small or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Real Estate vs. Glg Intl Small
Performance |
| Timeline |
| Prudential Real Estate |
| Glg Intl Small |
Prudential Real and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Real and Glg Intl
The main advantage of trading using opposite Prudential Real and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Real 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.| Prudential Real vs. Federated High Yield | Prudential Real vs. City National Rochdale | Prudential Real vs. Artisan High Income | Prudential Real vs. Tiaa Cref High Yield Fund |
| Glg Intl vs. Siit Ultra Short | Glg Intl vs. Vela Short Duration | Glg Intl vs. Prudential Short Duration | Glg Intl vs. Nuveen Short Duration High |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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