Correlation Between GLG LIFE and Recruit Holdings
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Recruit Holdings 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 Recruit Holdings 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 Recruit Holdings Co, you can compare the effects of market volatilities on GLG LIFE and Recruit Holdings 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 Recruit Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Recruit Holdings.
Diversification Opportunities for GLG LIFE and Recruit Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Recruit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Recruit Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Recruit Holdings 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 Recruit Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Recruit Holdings has no effect on the direction of GLG LIFE i.e., GLG LIFE and Recruit Holdings go up and down completely randomly.
Pair Corralation between GLG LIFE and Recruit Holdings
If you would invest 4,326 in Recruit Holdings Co on November 28, 2024 and sell it today you would earn a total of 1,368 from holding Recruit Holdings Co or generate 31.62% 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. Recruit Holdings Co
Performance |
| Timeline |
| GLG LIFE TECH |
| Recruit Holdings |
GLG LIFE and Recruit Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Recruit Holdings
The main advantage of trading using opposite GLG LIFE and Recruit Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Recruit Holdings 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 Recruit Holdings will offset losses from the drop in Recruit Holdings' long position.| GLG LIFE vs. CompuGroup Medical SE | GLG LIFE vs. AAC TECHNOLOGHLDGADR | GLG LIFE vs. BioNTech SE | GLG LIFE vs. Genscript Biotech |
| Recruit Holdings vs. EMPEROR ENT HOTEL | Recruit Holdings vs. Brockhaus Capital Management | Recruit Holdings vs. Platinum Investment Management | Recruit Holdings vs. MELIA HOTELS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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