Correlation Between NEW MILLENNIUM and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both NEW MILLENNIUM 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 NEW MILLENNIUM and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEW MILLENNIUM IRON and GLG LIFE TECH, you can compare the effects of market volatilities on NEW MILLENNIUM 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 NEW MILLENNIUM with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEW MILLENNIUM and GLG LIFE.
Diversification Opportunities for NEW MILLENNIUM and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NEW and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NEW MILLENNIUM IRON 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 NEW MILLENNIUM 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 NEW MILLENNIUM IRON 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 NEW MILLENNIUM i.e., NEW MILLENNIUM and GLG LIFE go up and down completely randomly.
Pair Corralation between NEW MILLENNIUM and GLG LIFE
If you would invest 2.00 in GLG LIFE TECH on November 2, 2024 and sell it today you would earn a total of 0.00 from holding GLG LIFE TECH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEW MILLENNIUM IRON vs. GLG LIFE TECH
Performance |
| Timeline |
| NEW MILLENNIUM IRON |
| GLG LIFE TECH |
NEW MILLENNIUM and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEW MILLENNIUM and GLG LIFE
The main advantage of trading using opposite NEW MILLENNIUM and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEW MILLENNIUM 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.| NEW MILLENNIUM vs. VELA TECHNOLPLC LS 0001 | NEW MILLENNIUM vs. United Insurance Holdings | NEW MILLENNIUM vs. BioNTech SE | NEW MILLENNIUM vs. SOFI TECHNOLOGIES |
| GLG LIFE vs. NORTHEAST UTILITIES | GLG LIFE vs. RYU Apparel | GLG LIFE vs. PATTIES FOODS | GLG LIFE vs. G III Apparel 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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