Correlation Between Glg Intl and Nationwide Bailard
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Nationwide Bailard 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 Nationwide Bailard 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 Nationwide Bailard Technology, you can compare the effects of market volatilities on Glg Intl and Nationwide Bailard 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 Nationwide Bailard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Nationwide Bailard.
Diversification Opportunities for Glg Intl and Nationwide Bailard
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Glg and Nationwide is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Nationwide Bailard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Bailard 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 Nationwide Bailard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Bailard has no effect on the direction of Glg Intl i.e., Glg Intl and Nationwide Bailard go up and down completely randomly.
Pair Corralation between Glg Intl and Nationwide Bailard
Assuming the 90 days horizon Glg Intl is expected to generate 1.69 times less return on investment than Nationwide Bailard. But when comparing it to its historical volatility, Glg Intl Small is 1.17 times less risky than Nationwide Bailard. It trades about 0.2 of its potential returns per unit of risk. Nationwide Bailard Technology is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,456 in Nationwide Bailard Technology on May 1, 2025 and sell it today you would earn a total of 507.00 from holding Nationwide Bailard Technology or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Nationwide Bailard Technology
Performance |
| Timeline |
| Glg Intl Small |
| Nationwide Bailard |
Glg Intl and Nationwide Bailard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Nationwide Bailard
The main advantage of trading using opposite Glg Intl and Nationwide Bailard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Nationwide Bailard 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 Nationwide Bailard will offset losses from the drop in Nationwide Bailard's long position.| Glg Intl vs. Ab Bond Inflation | Glg Intl vs. Short Duration Inflation | Glg Intl vs. Pimco Inflation Response | Glg Intl vs. Fidelity Sai Inflationfocused |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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