Correlation Between GLG LIFE and REMEDY ENTERTAINMENT
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT OYJ, you can compare the effects of market volatilities on GLG LIFE and REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and REMEDY ENTERTAINMENT.
Diversification Opportunities for GLG LIFE and REMEDY ENTERTAINMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and REMEDY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and REMEDY ENTERTAINMENT OYJ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REMEDY ENTERTAINMENT OYJ 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 REMEDY ENTERTAINMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REMEDY ENTERTAINMENT OYJ has no effect on the direction of GLG LIFE i.e., GLG LIFE and REMEDY ENTERTAINMENT go up and down completely randomly.
Pair Corralation between GLG LIFE and REMEDY ENTERTAINMENT
If you would invest 1,328 in REMEDY ENTERTAINMENT OYJ on October 26, 2024 and sell it today you would earn a total of 116.00 from holding REMEDY ENTERTAINMENT OYJ or generate 8.73% 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. REMEDY ENTERTAINMENT OYJ
Performance |
| Timeline |
| GLG LIFE TECH |
| REMEDY ENTERTAINMENT OYJ |
GLG LIFE and REMEDY ENTERTAINMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and REMEDY ENTERTAINMENT
The main advantage of trading using opposite GLG LIFE and REMEDY ENTERTAINMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT will offset losses from the drop in REMEDY ENTERTAINMENT's long position.| GLG LIFE vs. Corporate Travel Management | GLG LIFE vs. Japan Tobacco | GLG LIFE vs. Waste Management | GLG LIFE vs. Platinum Investment Management |
| REMEDY ENTERTAINMENT vs. GLG LIFE TECH | REMEDY ENTERTAINMENT vs. Sunny Optical Technology | REMEDY ENTERTAINMENT vs. REVO INSURANCE SPA | REMEDY ENTERTAINMENT vs. CDN IMPERIAL BANK |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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