Correlation Between Gmo High and Intech Managed
Can any of the company-specific risk be diversified away by investing in both Gmo High and Intech Managed 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 Gmo High and Intech Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo High Yield and Intech Managed Volatility, you can compare the effects of market volatilities on Gmo High and Intech Managed 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 Gmo High with a short position of Intech Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo High and Intech Managed.
Diversification Opportunities for Gmo High and Intech Managed
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gmo and Intech is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gmo High Yield and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility and Gmo High 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 Gmo High Yield are associated (or correlated) with Intech Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Gmo High i.e., Gmo High and Intech Managed go up and down completely randomly.
Pair Corralation between Gmo High and Intech Managed
Assuming the 90 days horizon Gmo High is expected to generate 2.93 times less return on investment than Intech Managed. But when comparing it to its historical volatility, Gmo High Yield is 3.15 times less risky than Intech Managed. It trades about 0.32 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,110 in Intech Managed Volatility on April 26, 2025 and sell it today you would earn a total of 141.00 from holding Intech Managed Volatility or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Gmo High Yield vs. Intech Managed Volatility
Performance |
| Timeline |
| Gmo High Yield |
| Intech Managed Volatility |
Gmo High and Intech Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo High and Intech Managed
The main advantage of trading using opposite Gmo High and Intech Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo High position performs unexpectedly, Intech Managed 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 Intech Managed will offset losses from the drop in Intech Managed's long position.| Gmo High vs. Alphacentric Lifesci Healthcare | Gmo High vs. Tekla Healthcare Investors | Gmo High vs. Hartford Healthcare Hls | Gmo High vs. Highland Longshort Healthcare |
| Intech Managed vs. Janus Forty Fund | Intech Managed vs. Janus High Yield Fund | Intech Managed vs. Janus Research Fund | Intech Managed vs. Intech Managed Volatility |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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