Correlation Between GLG LIFE and DFS Furniture
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and DFS Furniture 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 DFS Furniture 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 DFS Furniture PLC, you can compare the effects of market volatilities on GLG LIFE and DFS Furniture 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 DFS Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and DFS Furniture.
Diversification Opportunities for GLG LIFE and DFS Furniture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and DFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and DFS Furniture PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFS Furniture PLC 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 DFS Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFS Furniture PLC has no effect on the direction of GLG LIFE i.e., GLG LIFE and DFS Furniture go up and down completely randomly.
Pair Corralation between GLG LIFE and DFS Furniture
If you would invest 2.00 in GLG LIFE TECH on October 14, 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 | 94.12% |
| Values | Daily Returns |
GLG LIFE TECH vs. DFS Furniture PLC
Performance |
| Timeline |
| GLG LIFE TECH |
| DFS Furniture PLC |
GLG LIFE and DFS Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and DFS Furniture
The main advantage of trading using opposite GLG LIFE and DFS Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, DFS Furniture 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 DFS Furniture will offset losses from the drop in DFS Furniture's long position.| GLG LIFE vs. Pebblebrook Hotel Trust | GLG LIFE vs. New Residential Investment | GLG LIFE vs. Summit Hotel Properties | GLG LIFE vs. HK Electric Investments |
| DFS Furniture vs. GWILLI FOOD | DFS Furniture vs. TIANDE CHEMICAL | DFS Furniture vs. Sanyo Chemical Industries | DFS Furniture vs. Sinopec Shanghai Petrochemical |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |