Correlation Between MEDICAL FACILITIES and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and GLG LIFE 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 MEDICAL FACILITIES and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and GLG LIFE TECH, you can compare the effects of market volatilities on MEDICAL FACILITIES and GLG LIFE 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 MEDICAL FACILITIES with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and GLG LIFE.
Diversification Opportunities for MEDICAL FACILITIES and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEDICAL and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and GLG LIFE TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG LIFE TECH and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW are associated (or correlated) with GLG LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG LIFE TECH has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and GLG LIFE go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and GLG LIFE
Assuming the 90 days horizon MEDICAL FACILITIES is expected to generate 20.07 times less return on investment than GLG LIFE. But when comparing it to its historical volatility, MEDICAL FACILITIES NEW is 20.03 times less risky than GLG LIFE. It trades about 0.08 of its potential returns per unit of risk. GLG LIFE TECH is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.10 in GLG LIFE TECH on September 3, 2024 and sell it today you would earn a total of 0.90 from holding GLG LIFE TECH or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. GLG LIFE TECH
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| GLG LIFE TECH |
MEDICAL FACILITIES and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and GLG LIFE
The main advantage of trading using opposite MEDICAL FACILITIES and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, GLG LIFE 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 GLG LIFE will offset losses from the drop in GLG LIFE's long position.| MEDICAL FACILITIES vs. Superior Plus Corp | MEDICAL FACILITIES vs. NMI Holdings | MEDICAL FACILITIES vs. Origin Agritech | MEDICAL FACILITIES vs. SIVERS SEMICONDUCTORS AB |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |