Correlation Between Tfa Alphagen and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen 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 Tfa Alphagen and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tfa Alphagen Growth and Glg Intl Small, you can compare the effects of market volatilities on Tfa Alphagen 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 Tfa Alphagen with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Glg Intl.
Diversification Opportunities for Tfa Alphagen and Glg Intl
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tfa and Glg is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen 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 Tfa Alphagen 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 Tfa Alphagen 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 Tfa Alphagen i.e., Tfa Alphagen and Glg Intl go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Glg Intl
Assuming the 90 days horizon Tfa Alphagen is expected to generate 1.09 times less return on investment than Glg Intl. But when comparing it to its historical volatility, Tfa Alphagen Growth is 1.22 times less risky than Glg Intl. It trades about 0.08 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,377 in Glg Intl Small on October 16, 2024 and sell it today you would earn a total of 1,931 from holding Glg Intl Small or generate 30.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tfa Alphagen Growth vs. Glg Intl Small
Performance |
| Timeline |
| Tfa Alphagen Growth |
| Glg Intl Small |
Tfa Alphagen and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tfa Alphagen and Glg Intl
The main advantage of trading using opposite Tfa Alphagen and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen 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.| Tfa Alphagen vs. Dow 2x Strategy | Tfa Alphagen vs. Oberweis Emerging Growth | Tfa Alphagen vs. Franklin Emerging Market | Tfa Alphagen vs. Artisan Developing World |
| Glg Intl vs. Tfa Alphagen Growth | Glg Intl vs. T Rowe Price | Glg Intl vs. Qs Moderate Growth | Glg Intl vs. Qs Growth Fund |
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.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |