Correlation Between GLG LIFE and Corporate Travel
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Corporate Travel 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 Corporate Travel 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 Corporate Travel Management, you can compare the effects of market volatilities on GLG LIFE and Corporate Travel 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 Corporate Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Corporate Travel.
Diversification Opportunities for GLG LIFE and Corporate Travel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Corporate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Corporate Travel Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Travel Man 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 Corporate Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Travel Man has no effect on the direction of GLG LIFE i.e., GLG LIFE and Corporate Travel go up and down completely randomly.
Pair Corralation between GLG LIFE and Corporate Travel
If you would invest 790.00 in Corporate Travel Management on October 19, 2024 and sell it today you would earn a total of 30.00 from holding Corporate Travel Management or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
GLG LIFE TECH vs. Corporate Travel Management
Performance |
| Timeline |
| GLG LIFE TECH |
| Corporate Travel Man |
GLG LIFE and Corporate Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Corporate Travel
The main advantage of trading using opposite GLG LIFE and Corporate Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Corporate Travel 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 Corporate Travel will offset losses from the drop in Corporate Travel's long position.| GLG LIFE vs. Stag Industrial | GLG LIFE vs. Nordic Semiconductor ASA | GLG LIFE vs. Cars Inc | GLG LIFE vs. CARSALESCOM |
| Corporate Travel vs. GLG LIFE TECH | Corporate Travel vs. Corsair Gaming | Corporate Travel vs. Altair Engineering | Corporate Travel vs. Ryanair Holdings plc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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