Correlation Between Glg Intl and Swan Defined
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Swan Defined 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 Glg Intl and Swan Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Swan Defined Risk, you can compare the effects of market volatilities on Glg Intl and Swan Defined 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 Glg Intl with a short position of Swan Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Swan Defined.
Diversification Opportunities for Glg Intl and Swan Defined
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glg and Swan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Swan Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Defined Risk and Glg Intl 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 Glg Intl Small are associated (or correlated) with Swan Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Defined Risk has no effect on the direction of Glg Intl i.e., Glg Intl and Swan Defined go up and down completely randomly.
Pair Corralation between Glg Intl and Swan Defined
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.36 times more return on investment than Swan Defined. However, Glg Intl is 1.36 times more volatile than Swan Defined Risk. It trades about 0.07 of its potential returns per unit of risk. Swan Defined Risk is currently generating about -0.1 per unit of risk. If you would invest 8,294 in Glg Intl Small on September 24, 2024 and sell it today you would earn a total of 111.00 from holding Glg Intl Small or generate 1.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Glg Intl Small vs. Swan Defined Risk
Performance |
Timeline |
Glg Intl Small |
Swan Defined Risk |
Glg Intl and Swan Defined Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Glg Intl and Swan Defined
The main advantage of trading using opposite Glg Intl and Swan Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Swan Defined 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 Swan Defined will offset losses from the drop in Swan Defined's long position.Glg Intl vs. Fidelity Advisor Health | Glg Intl vs. Hartford Healthcare Hls | Glg Intl vs. Invesco Global Health | Glg Intl vs. Vanguard Health Care |
Swan Defined vs. Glg Intl Small | Swan Defined vs. Touchstone Small Cap | Swan Defined vs. Kinetics Small Cap | Swan Defined vs. Guidemark Smallmid Cap |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |