Correlation Between Crossmark Steward and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Crossmark Steward 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 Crossmark Steward and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossmark Steward Equity and Glg Intl Small, you can compare the effects of market volatilities on Crossmark Steward 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 Crossmark Steward with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Glg Intl.
Diversification Opportunities for Crossmark Steward and Glg Intl
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crossmark and Glg is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity 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 Crossmark Steward 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 Crossmark Steward Equity 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 Crossmark Steward i.e., Crossmark Steward and Glg Intl go up and down completely randomly.
Pair Corralation between Crossmark Steward and Glg Intl
Assuming the 90 days horizon Crossmark Steward Equity is expected to generate 0.48 times more return on investment than Glg Intl. However, Crossmark Steward Equity is 2.09 times less risky than Glg Intl. It trades about 0.07 of its potential returns per unit of risk. Glg Intl Small is currently generating about -0.03 per unit of risk. If you would invest 2,732 in Crossmark Steward Equity on December 27, 2024 and sell it today you would earn a total of 60.00 from holding Crossmark Steward Equity or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Crossmark Steward Equity vs. Glg Intl Small
Performance |
Timeline |
Crossmark Steward Equity |
Glg Intl Small |
Crossmark Steward and Glg Intl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Crossmark Steward and Glg Intl
The main advantage of trading using opposite Crossmark Steward and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossmark Steward 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.Crossmark Steward vs. Pace International Equity | Crossmark Steward vs. Morningstar International Equity | Crossmark Steward vs. Jhancock Global Equity | Crossmark Steward vs. Touchstone International Equity |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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