Correlation Between Gmo High and Intech Us
Can any of the company-specific risk be diversified away by investing in both Gmo High and Intech Us 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 Us 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 Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo High and Intech Us.
Diversification Opportunities for Gmo High and Intech Us
Poor diversification
The 3 months correlation between Gmo and Intech is 0.75. 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 Us. 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 Us go up and down completely randomly.
Pair Corralation between Gmo High and Intech Us
Assuming the 90 days horizon Gmo High is expected to generate 2.24 times less return on investment than Intech Us. But when comparing it to its historical volatility, Gmo High Yield is 3.92 times less risky than Intech Us. It trades about 0.34 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,185 in Intech Managed Volatility on June 3, 2025 and sell it today you would earn a total of 82.00 from holding Intech Managed Volatility or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo High Yield vs. Intech Managed Volatility
Performance |
| Timeline |
| Gmo High Yield |
| Intech Managed Volatility |
Gmo High and Intech Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo High and Intech Us
The main advantage of trading using opposite Gmo High and Intech Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo High position performs unexpectedly, Intech Us 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 Us will offset losses from the drop in Intech Us' long position.| Gmo High vs. Msift High Yield | Gmo High vs. Columbia High Yield | Gmo High vs. Lord Abbett Short | Gmo High vs. Federated High Yield |
| Intech Us vs. Janus Forty Fund | Intech Us vs. Janus High Yield Fund | Intech Us vs. Janus Research Fund | Intech Us 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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