Correlation Between Gmo Emerging and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Gmo Emerging and Boston Partners 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 Emerging and Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Emerging Markets and Boston Partners Emerging, you can compare the effects of market volatilities on Gmo Emerging and Boston Partners 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 Emerging with a short position of Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Emerging and Boston Partners.
Diversification Opportunities for Gmo Emerging and Boston Partners
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gmo and Boston is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Emerging Markets and Boston Partners Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Emerging and Gmo Emerging 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 Emerging Markets are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Emerging has no effect on the direction of Gmo Emerging i.e., Gmo Emerging and Boston Partners go up and down completely randomly.
Pair Corralation between Gmo Emerging and Boston Partners
Assuming the 90 days horizon Gmo Emerging is expected to generate 1.33 times less return on investment than Boston Partners. In addition to that, Gmo Emerging is 1.34 times more volatile than Boston Partners Emerging. It trades about 0.13 of its total potential returns per unit of risk. Boston Partners Emerging is currently generating about 0.24 per unit of volatility. If you would invest 910.00 in Boston Partners Emerging on August 16, 2025 and sell it today you would earn a total of 82.00 from holding Boston Partners Emerging or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Emerging Markets vs. Boston Partners Emerging
Performance |
| Timeline |
| Gmo Emerging Markets |
| Boston Partners Emerging |
Gmo Emerging and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Emerging and Boston Partners
The main advantage of trading using opposite Gmo Emerging and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Emerging position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Gmo Emerging vs. Fulcrum Diversified Absolute | Gmo Emerging vs. Massmutual Premier Diversified | Gmo Emerging vs. Tiaa Cref Lifestyle Conservative | Gmo Emerging vs. Allianzgi Diversified Income |
| Boston Partners vs. Fidelity Sai Convertible | Boston Partners vs. Putnam Convertible Securities | Boston Partners vs. Rationalpier 88 Convertible | Boston Partners vs. Lord Abbett Convertible |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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