Correlation Between James Balanced: and Glenmede International

Can any of the company-specific risk be diversified away by investing in both James Balanced: and Glenmede International 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 James Balanced: and Glenmede International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between James Balanced Golden and Glenmede International Secured, you can compare the effects of market volatilities on James Balanced: and Glenmede International 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 James Balanced: with a short position of Glenmede International. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Glenmede International.

Diversification Opportunities for James Balanced: and Glenmede International

0.67

Correlation Coefficient

James Balanced:  Glenmede International

Poor diversification

The 3 months correlation between James and Glenmede is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Glenmede International Secured in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glenmede International and James Balanced: 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 James Balanced Golden are associated (or correlated) with Glenmede International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glenmede International has no effect on the direction of James Balanced: i.e., James Balanced: and Glenmede International go up and down completely randomly.

Pair Corralation between James Balanced: and Glenmede International

Assuming the 90 days horizon James Balanced Golden is expected to generate 0.99 times more return on investment than Glenmede International. However, James Balanced Golden is 1.01 times less risky than Glenmede International. It trades about 0.01 of its potential returns per unit of risk. Glenmede International Secured is currently generating about 0.0 per unit of risk. If you would invest  2,261  in James Balanced Golden on December 4, 2024 and sell it today you would earn a total of  1.00  from holding James Balanced Golden or generate 0.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

James Balanced Golden  vs.  Glenmede International Secured

James Balanced Golden

Risk-Adjusted Performance

Very Weak

Over the last 90 days James Balanced Golden has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, James Balanced: is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Glenmede International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Glenmede International Secured has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with James Balanced: and Glenmede International

The main advantage of trading using opposite James Balanced: and Glenmede International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Glenmede International 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 Glenmede International will offset losses from the drop in Glenmede International's long position.

The idea behind James Balanced Golden and Glenmede International Secured pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.