Correlation Between Glg Intl and Prudential High
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Prudential High 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 Prudential High 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 Prudential High Yield, you can compare the effects of market volatilities on Glg Intl and Prudential High 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 Prudential High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Prudential High.
Diversification Opportunities for Glg Intl and Prudential High
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glg and Prudential is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Prudential High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential High Yield 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 Prudential High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential High Yield has no effect on the direction of Glg Intl i.e., Glg Intl and Prudential High go up and down completely randomly.
Pair Corralation between Glg Intl and Prudential High
Assuming the 90 days horizon Glg Intl Small is expected to generate 4.04 times more return on investment than Prudential High. However, Glg Intl is 4.04 times more volatile than Prudential High Yield. It trades about 0.12 of its potential returns per unit of risk. Prudential High Yield is currently generating about 0.3 per unit of risk. If you would invest 8,656 in Glg Intl Small on May 29, 2025 and sell it today you would earn a total of 554.00 from holding Glg Intl Small or generate 6.4% 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. Prudential High Yield
Performance |
| Timeline |
| Glg Intl Small |
| Prudential High Yield |
Glg Intl and Prudential High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Prudential High
The main advantage of trading using opposite Glg Intl and Prudential High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Prudential High 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 Prudential High will offset losses from the drop in Prudential High's long position.| Glg Intl vs. Lord Abbett Short | Glg Intl vs. Astor Longshort Fund | Glg Intl vs. Franklin Federal Limited Term | Glg Intl vs. The Short Term Municipal |
| Prudential High vs. Eagle Growth Income | Prudential High vs. Qs Growth Fund | Prudential High vs. Lifestyle Ii Growth | Prudential High vs. Praxis Genesis Growth |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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