Correlation Between Zoom Video and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both Zoom Video 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 Zoom Video and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoom Video Communications and GLG LIFE TECH, you can compare the effects of market volatilities on Zoom Video 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 Zoom Video with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and GLG LIFE.
Diversification Opportunities for Zoom Video and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zoom and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications 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 Zoom Video 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 Zoom Video Communications 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 Zoom Video i.e., Zoom Video and GLG LIFE go up and down completely randomly.
Pair Corralation between Zoom Video and GLG LIFE
If you would invest 6,826 in Zoom Video Communications on August 29, 2024 and sell it today you would earn a total of 1,391 from holding Zoom Video Communications or generate 20.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoom Video Communications vs. GLG LIFE TECH
Performance |
| Timeline |
| Zoom Video Communications |
| GLG LIFE TECH |
Zoom Video and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and GLG LIFE
The main advantage of trading using opposite Zoom Video and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video 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.| Zoom Video vs. GALENA MINING LTD | Zoom Video vs. Ming Le Sports | Zoom Video vs. ADRIATIC METALS LS 013355 | Zoom Video vs. MCEWEN MINING INC |
| GLG LIFE vs. MAGIC SOFTWARE ENTR | GLG LIFE vs. Harmony Gold Mining | GLG LIFE vs. Columbia Sportswear | GLG LIFE vs. MCEWEN MINING INC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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