Correlation Between GLG LIFE and CN MODERN
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and CN MODERN 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 GLG LIFE and CN MODERN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLG LIFE TECH and CN MODERN DAIRY, you can compare the effects of market volatilities on GLG LIFE and CN MODERN 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 GLG LIFE with a short position of CN MODERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and CN MODERN.
Diversification Opportunities for GLG LIFE and CN MODERN
Pay attention - limited upside
The 3 months correlation between GLG and 07M is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and CN MODERN DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN MODERN DAIRY and GLG LIFE 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 GLG LIFE TECH are associated (or correlated) with CN MODERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN MODERN DAIRY has no effect on the direction of GLG LIFE i.e., GLG LIFE and CN MODERN go up and down completely randomly.
Pair Corralation between GLG LIFE and CN MODERN
If you would invest 11.00 in CN MODERN DAIRY on December 1, 2024 and sell it today you would earn a total of 2.00 from holding CN MODERN DAIRY or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLG LIFE TECH vs. CN MODERN DAIRY
Performance |
| Timeline |
| GLG LIFE TECH |
| CN MODERN DAIRY |
GLG LIFE and CN MODERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and CN MODERN
The main advantage of trading using opposite GLG LIFE and CN MODERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, CN MODERN 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 CN MODERN will offset losses from the drop in CN MODERN's long position.| GLG LIFE vs. Monster Beverage Corp | GLG LIFE vs. Addtech AB | GLG LIFE vs. Fevertree Drinks PLC | GLG LIFE vs. ScanSource |
| CN MODERN vs. De Grey Mining | CN MODERN vs. INTER CARS SA | CN MODERN vs. Zijin Mining Group | CN MODERN vs. GOLDQUEST MINING |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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