Correlation Between Storebrand Global and Glanbia PLC
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By analyzing existing cross correlation between Storebrand Global Solutions and Glanbia PLC, you can compare the effects of market volatilities on Storebrand Global and Glanbia PLC 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 Storebrand Global with a short position of Glanbia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and Glanbia PLC.
Diversification Opportunities for Storebrand Global and Glanbia PLC
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Storebrand and Glanbia is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global Solutions and Glanbia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glanbia PLC and Storebrand 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 Storebrand Global Solutions are associated (or correlated) with Glanbia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glanbia PLC has no effect on the direction of Storebrand Global i.e., Storebrand Global and Glanbia PLC go up and down completely randomly.
Pair Corralation between Storebrand Global and Glanbia PLC
Assuming the 90 days trading horizon Storebrand Global Solutions is expected to generate 0.38 times more return on investment than Glanbia PLC. However, Storebrand Global Solutions is 2.64 times less risky than Glanbia PLC. It trades about -0.09 of its potential returns per unit of risk. Glanbia PLC is currently generating about -0.15 per unit of risk. If you would invest 237,235 in Storebrand Global Solutions on August 28, 2024 and sell it today you would lose (3,543) from holding Storebrand Global Solutions or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Storebrand Global Solutions vs. Glanbia PLC
Performance |
| Timeline |
| Storebrand Global |
| Glanbia PLC |
Storebrand Global and Glanbia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Global and Glanbia PLC
The main advantage of trading using opposite Storebrand Global and Glanbia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Global position performs unexpectedly, Glanbia PLC 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 Glanbia PLC will offset losses from the drop in Glanbia PLC's long position.| Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Dalata Hotel Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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