Correlation Between Saat Market and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Saat Market 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 Saat Market and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Market Growth and Glg Intl Small, you can compare the effects of market volatilities on Saat Market 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 Saat Market with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Glg Intl.
Diversification Opportunities for Saat Market and Glg Intl
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saat and Glg is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth 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 Saat Market 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 Saat Market Growth 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 Saat Market i.e., Saat Market and Glg Intl go up and down completely randomly.
Pair Corralation between Saat Market and Glg Intl
Assuming the 90 days horizon Saat Market Growth is expected to under-perform the Glg Intl. But the mutual fund apears to be less risky and, when comparing its historical volatility, Saat Market Growth is 1.19 times less risky than Glg Intl. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Glg Intl Small is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 8,688 in Glg Intl Small on October 17, 2024 and sell it today you would lose (243.00) from holding Glg Intl Small or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Glg Intl Small
Performance |
| Timeline |
| Saat Market Growth |
| Glg Intl Small |
Saat Market and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Glg Intl
The main advantage of trading using opposite Saat Market and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market 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.| Saat Market vs. Asg Global Alternatives | Saat Market vs. Dreyfusstandish Global Fixed | Saat Market vs. Rbb Fund Trust | Saat Market vs. Qs Global Equity |
| Glg Intl vs. Franklin Emerging Market | Glg Intl vs. Dws Emerging Markets | Glg Intl vs. Saat Market Growth | Glg Intl vs. Aqr Sustainable Long Short |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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