Correlation Between GLG LIFE and Addus HomeCare
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Addus HomeCare 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 Addus HomeCare 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 Addus HomeCare, you can compare the effects of market volatilities on GLG LIFE and Addus HomeCare 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 Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Addus HomeCare.
Diversification Opportunities for GLG LIFE and Addus HomeCare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Addus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare 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 Addus HomeCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addus HomeCare has no effect on the direction of GLG LIFE i.e., GLG LIFE and Addus HomeCare go up and down completely randomly.
Pair Corralation between GLG LIFE and Addus HomeCare
If you would invest 2.00 in GLG LIFE TECH on November 8, 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. Addus HomeCare
Performance |
| Timeline |
| GLG LIFE TECH |
| Addus HomeCare |
GLG LIFE and Addus HomeCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Addus HomeCare
The main advantage of trading using opposite GLG LIFE and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Addus HomeCare 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 Addus HomeCare will offset losses from the drop in Addus HomeCare's long position.| GLG LIFE vs. BioNTech SE | GLG LIFE vs. Minerals Technologies | GLG LIFE vs. Chesapeake Utilities | GLG LIFE vs. MOVIE GAMES SA |
| Addus HomeCare vs. GEELY AUTOMOBILE | Addus HomeCare vs. CREO MEDICAL GRP | Addus HomeCare vs. Grupo Carso SAB | Addus HomeCare vs. Actinogen Medical Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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