Correlation Between GLG LIFE and CI GAMES
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and CI GAMES 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 CI GAMES 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 CI GAMES SA, you can compare the effects of market volatilities on GLG LIFE and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and CI GAMES.
Diversification Opportunities for GLG LIFE and CI GAMES
Pay attention - limited upside
The 3 months correlation between GLG and CI7 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of GLG LIFE i.e., GLG LIFE and CI GAMES go up and down completely randomly.
Pair Corralation between GLG LIFE and CI GAMES
If you would invest 2.00 in GLG LIFE TECH on September 1, 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. CI GAMES SA
Performance |
| Timeline |
| GLG LIFE TECH |
| CI GAMES SA |
GLG LIFE and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and CI GAMES
The main advantage of trading using opposite GLG LIFE and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.The idea behind GLG LIFE TECH and CI GAMES SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CI GAMES vs. PT Bank Maybank | CI GAMES vs. REVO INSURANCE SPA | CI GAMES vs. The Hanover Insurance | CI GAMES vs. Webster Financial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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