Correlation Between GLG LIFE and APPLE HOSPITALITY
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and APPLE HOSPITALITY 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 APPLE HOSPITALITY 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 APPLE HOSPITALITY REIT, you can compare the effects of market volatilities on GLG LIFE and APPLE HOSPITALITY 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 APPLE HOSPITALITY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and APPLE HOSPITALITY.
Diversification Opportunities for GLG LIFE and APPLE HOSPITALITY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and APPLE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and APPLE HOSPITALITY REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE HOSPITALITY REIT 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 APPLE HOSPITALITY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE HOSPITALITY REIT has no effect on the direction of GLG LIFE i.e., GLG LIFE and APPLE HOSPITALITY go up and down completely randomly.
Pair Corralation between GLG LIFE and APPLE HOSPITALITY
If you would invest 1,322 in APPLE HOSPITALITY REIT on September 5, 2024 and sell it today you would earn a total of 206.00 from holding APPLE HOSPITALITY REIT or generate 15.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
GLG LIFE TECH vs. APPLE HOSPITALITY REIT
Performance |
| Timeline |
| GLG LIFE TECH |
| APPLE HOSPITALITY REIT |
GLG LIFE and APPLE HOSPITALITY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and APPLE HOSPITALITY
The main advantage of trading using opposite GLG LIFE and APPLE HOSPITALITY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, APPLE HOSPITALITY 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 APPLE HOSPITALITY will offset losses from the drop in APPLE HOSPITALITY's long position.| GLG LIFE vs. Lery Seafood Group | GLG LIFE vs. AUSNUTRIA DAIRY | GLG LIFE vs. AUSTEVOLL SEAFOOD | GLG LIFE vs. CAREER EDUCATION |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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