Correlation Between Glg Intl and Global Alpha
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Global Alpha 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 Global Alpha 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 The Global Alpha, you can compare the effects of market volatilities on Glg Intl and Global Alpha 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 Global Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Global Alpha.
Diversification Opportunities for Glg Intl and Global Alpha
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glg and Global is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and The Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Alpha 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 Global Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Alpha has no effect on the direction of Glg Intl i.e., Glg Intl and Global Alpha go up and down completely randomly.
Pair Corralation between Glg Intl and Global Alpha
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.06 times more return on investment than Global Alpha. However, Glg Intl is 1.06 times more volatile than The Global Alpha. It trades about 0.07 of its potential returns per unit of risk. The Global Alpha is currently generating about 0.03 per unit of risk. If you would invest 9,113 in Glg Intl Small on August 19, 2025 and sell it today you would earn a total of 341.00 from holding Glg Intl Small or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. The Global Alpha
Performance |
| Timeline |
| Glg Intl Small |
| Global Alpha |
Glg Intl and Global Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Global Alpha
The main advantage of trading using opposite Glg Intl and Global Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Global Alpha 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 Global Alpha will offset losses from the drop in Global Alpha's long position.| Glg Intl vs. Franklin High Yield | Glg Intl vs. American Century High | Glg Intl vs. Oppenheimer Roc High | Glg Intl vs. California High Yield Municipal |
| Global Alpha vs. The Eafe Pure | Global Alpha vs. The Long Term | Global Alpha vs. Baillie Gifford International | Global Alpha vs. Baillie Gifford Global |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |