Correlation Between Predex Funds and Gmo Global
Can any of the company-specific risk be diversified away by investing in both Predex Funds and Gmo 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 Predex Funds and Gmo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Predex Funds and Gmo Global Asset, you can compare the effects of market volatilities on Predex Funds and Gmo 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 Predex Funds with a short position of Gmo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Predex Funds and Gmo Global.
Diversification Opportunities for Predex Funds and Gmo Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Predex and Gmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Predex Funds and Gmo Global Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Global Asset and Predex Funds 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 Predex Funds are associated (or correlated) with Gmo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Global Asset has no effect on the direction of Predex Funds i.e., Predex Funds and Gmo Global go up and down completely randomly.
Pair Corralation between Predex Funds and Gmo Global
Assuming the 90 days horizon Predex Funds is expected to under-perform the Gmo Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Predex Funds is 37.1 times less risky than Gmo Global. The mutual fund trades about -0.14 of its potential returns per unit of risk. The Gmo Global Asset is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,190 in Gmo Global Asset on October 22, 2024 and sell it today you would earn a total of 28.00 from holding Gmo Global Asset or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Predex Funds vs. Gmo Global Asset
Performance |
| Timeline |
| Predex Funds |
| Gmo Global Asset |
Predex Funds and Gmo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Predex Funds and Gmo Global
The main advantage of trading using opposite Predex Funds and Gmo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Predex Funds position performs unexpectedly, Gmo 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 Gmo Global will offset losses from the drop in Gmo Global's long position.| Predex Funds vs. Wesmark Government Bond | Predex Funds vs. Payden Government Fund | Predex Funds vs. Elfun Government Money | Predex Funds vs. Ridgeworth Seix Government |
| Gmo Global vs. Predex Funds | Gmo Global vs. Victory Incore Fund | Gmo Global vs. T Rowe Price | Gmo Global vs. T Rowe Price |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |