Correlation Between GLG LIFE and Orange SA
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Orange SA 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 Orange SA 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 Orange SA, you can compare the effects of market volatilities on GLG LIFE and Orange SA 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 Orange SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Orange SA.
Diversification Opportunities for GLG LIFE and Orange SA
Pay attention - limited upside
The 3 months correlation between GLG and Orange is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Orange SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orange 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 Orange SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orange SA has no effect on the direction of GLG LIFE i.e., GLG LIFE and Orange SA go up and down completely randomly.
Pair Corralation between GLG LIFE and Orange SA
If you would invest 2.00 in GLG LIFE TECH on September 2, 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 | 98.48% |
| Values | Daily Returns |
GLG LIFE TECH vs. Orange SA
Performance |
| Timeline |
| GLG LIFE TECH |
| Orange SA |
GLG LIFE and Orange SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Orange SA
The main advantage of trading using opposite GLG LIFE and Orange SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Orange SA 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 Orange SA will offset losses from the drop in Orange SA's long position.| GLG LIFE vs. North American Construction | GLG LIFE vs. Hanison Construction Holdings | GLG LIFE vs. Sumitomo Mitsui Construction | GLG LIFE vs. Nufarm Limited |
| Orange SA vs. Deutsche Telekom AG | Orange SA vs. Superior Plus Corp | Orange SA vs. NMI Holdings | Orange SA vs. Origin Agritech |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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