Correlation Between GLG LIFE and PT Bank
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and PT Bank 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 PT Bank 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 PT Bank Rakyat, you can compare the effects of market volatilities on GLG LIFE and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and PT Bank.
Diversification Opportunities for GLG LIFE and PT Bank
Pay attention - limited upside
The 3 months correlation between GLG and BYRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and PT Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Rakyat 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Rakyat has no effect on the direction of GLG LIFE i.e., GLG LIFE and PT Bank go up and down completely randomly.
Pair Corralation between GLG LIFE and PT Bank
If you would invest 2.00 in GLG LIFE TECH on October 20, 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. PT Bank Rakyat
Performance |
| Timeline |
| GLG LIFE TECH |
| PT Bank Rakyat |
GLG LIFE and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and PT Bank
The main advantage of trading using opposite GLG LIFE and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| GLG LIFE vs. Stag Industrial | GLG LIFE vs. Nordic Semiconductor ASA | GLG LIFE vs. Cars Inc | GLG LIFE vs. CARSALESCOM |
| PT Bank vs. Charter Communications | PT Bank vs. GLG LIFE TECH | PT Bank vs. BioNTech SE | PT Bank vs. Telecom Argentina SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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