Correlation Between Gmo Global and Global Multi
Can any of the company-specific risk be diversified away by investing in both Gmo Global and Global Multi 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 Global Multi 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 Global Multi Strategy Fund, you can compare the effects of market volatilities on Gmo Global and Global Multi 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 Global Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Global Multi.
Diversification Opportunities for Gmo Global and Global Multi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gmo and Global is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity and Global Multi Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Multi Strategy 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 Global Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Multi Strategy has no effect on the direction of Gmo Global i.e., Gmo Global and Global Multi go up and down completely randomly.
Pair Corralation between Gmo Global and Global Multi
Assuming the 90 days horizon Gmo Global Equity is expected to generate 3.53 times more return on investment than Global Multi. However, Gmo Global is 3.53 times more volatile than Global Multi Strategy Fund. It trades about 0.32 of its potential returns per unit of risk. Global Multi Strategy Fund is currently generating about 0.43 per unit of risk. If you would invest 2,874 in Gmo Global Equity on April 25, 2025 and sell it today you would earn a total of 383.00 from holding Gmo Global Equity or generate 13.33% 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. Global Multi Strategy Fund
Performance |
| Timeline |
| Gmo Global Equity |
| Global Multi Strategy |
Gmo Global and Global Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Global Multi
The main advantage of trading using opposite Gmo Global and Global Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global position performs unexpectedly, Global Multi 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 Multi will offset losses from the drop in Global Multi's long position.| Gmo Global vs. Allianzgi Diversified Income | Gmo Global vs. Pgim Conservative Retirement | Gmo Global vs. American Funds Conservative | Gmo Global vs. Columbia Diversified Equity |
| Global Multi vs. T Rowe Price | Global Multi vs. Tfa Tactical Income | Global Multi vs. Kirr Marbach Partners | Global Multi vs. Transamerica Emerging Markets |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |