Correlation Between Polar Capital and Ms Global
Can any of the company-specific risk be diversified away by investing in both Polar Capital and Ms Global 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 Polar Capital and Ms Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Emerging and Ms Global Fixed, you can compare the effects of market volatilities on Polar Capital and Ms Global 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 Polar Capital with a short position of Ms Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Ms Global.
Diversification Opportunities for Polar Capital and Ms Global
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Polar and MFIRX is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Emerging and Ms Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ms Global Fixed and Polar Capital 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 Polar Capital Emerging are associated (or correlated) with Ms Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ms Global Fixed has no effect on the direction of Polar Capital i.e., Polar Capital and Ms Global go up and down completely randomly.
Pair Corralation between Polar Capital and Ms Global
Assuming the 90 days horizon Polar Capital Emerging is expected to under-perform the Ms Global. In addition to that, Polar Capital is 6.26 times more volatile than Ms Global Fixed. It trades about -0.19 of its total potential returns per unit of risk. Ms Global Fixed is currently generating about 0.25 per unit of volatility. 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 |
Polar Capital Emerging vs. Ms Global Fixed
Performance |
| Timeline |
| Polar Capital Emerging |
| Ms Global Fixed |
Polar Capital and Ms Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Ms Global
The main advantage of trading using opposite Polar Capital and Ms Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital position performs unexpectedly, Ms Global 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 Ms Global will offset losses from the drop in Ms Global's long position.| Polar Capital vs. Thrivent Income Fund | Polar Capital vs. T Rowe Price | Polar Capital vs. Ab Bond Inflation | Polar Capital vs. Dreyfusstandish Global Fixed |
| 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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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