Correlation Between GLG LIFE and TOREX SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR LTD, you can compare the effects of market volatilities on GLG LIFE and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and TOREX SEMICONDUCTOR.
Diversification Opportunities for GLG LIFE and TOREX SEMICONDUCTOR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and TOREX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and TOREX SEMICONDUCTOR LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOREX SEMICONDUCTOR LTD has no effect on the direction of GLG LIFE i.e., GLG LIFE and TOREX SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between GLG LIFE and TOREX SEMICONDUCTOR
If you would invest 2.00 in GLG LIFE TECH on November 3, 2024 and sell it today you would earn a total of 0.00 from holding GLG LIFE TECH or generate 0.0% 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. TOREX SEMICONDUCTOR LTD
Performance |
| Timeline |
| GLG LIFE TECH |
| TOREX SEMICONDUCTOR LTD |
GLG LIFE and TOREX SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and TOREX SEMICONDUCTOR
The main advantage of trading using opposite GLG LIFE and TOREX SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR will offset losses from the drop in TOREX SEMICONDUCTOR's long position.| GLG LIFE vs. UNITED UTILITIES GR | GLG LIFE vs. United Utilities Group | GLG LIFE vs. Chesapeake Utilities | GLG LIFE vs. MARKET VECTR RETAIL |
| TOREX SEMICONDUCTOR vs. CARDINAL HEALTH | TOREX SEMICONDUCTOR vs. Cardinal Health | TOREX SEMICONDUCTOR vs. HEALTHSTREAM | TOREX SEMICONDUCTOR vs. PURETECH HEALTH 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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