Correlation Between Gmo Global and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both Gmo Global and Balanced Fund 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 Global and Balanced Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Equity and Balanced Fund Retail, you can compare the effects of market volatilities on Gmo Global and Balanced Fund 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 Global with a short position of Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Balanced Fund.
Diversification Opportunities for Gmo Global and Balanced Fund
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gmo and Balanced is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity and Balanced Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Retail and Gmo Global 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 Global Equity are associated (or correlated) with Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Retail has no effect on the direction of Gmo Global i.e., Gmo Global and Balanced Fund go up and down completely randomly.
Pair Corralation between Gmo Global and Balanced Fund
Assuming the 90 days horizon Gmo Global Equity is expected to generate 1.42 times more return on investment than Balanced Fund. However, Gmo Global is 1.42 times more volatile than Balanced Fund Retail. It trades about 0.17 of its potential returns per unit of risk. Balanced Fund Retail is currently generating about 0.16 per unit of risk. If you would invest 3,091 in Gmo Global Equity on September 6, 2025 and sell it today you would earn a total of 483.00 from holding Gmo Global Equity or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Equity vs. Balanced Fund Retail
Performance |
| Timeline |
| Gmo Global Equity |
| Balanced Fund Retail |
Gmo Global and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Balanced Fund
The main advantage of trading using opposite Gmo Global and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| Gmo Global vs. Flkypx | Gmo Global vs. Tax Managed Large Cap | Gmo Global vs. Rbb Fund | Gmo Global vs. Wabmsx |
| Balanced Fund vs. Saat Tax Managed Aggressive | Balanced Fund vs. John Hancock High | Balanced Fund vs. Gmo High Yield | Balanced Fund vs. Federated Municipal High |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |