Correlation Between GLG LIFE and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated, you can compare the effects of market volatilities on GLG LIFE and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Corning Incorporated.
Diversification Opportunities for GLG LIFE and Corning Incorporated
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Corning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of GLG LIFE i.e., GLG LIFE and Corning Incorporated go up and down completely randomly.
Pair Corralation between GLG LIFE and Corning Incorporated
If you would invest 2,927 in Corning Incorporated on September 3, 2024 and sell it today you would earn a total of 1,625 from holding Corning Incorporated or generate 55.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.41% |
| Values | Daily Returns |
GLG LIFE TECH vs. Corning Incorporated
Performance |
| Timeline |
| GLG LIFE TECH |
| Corning Incorporated |
GLG LIFE and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Corning Incorporated
The main advantage of trading using opposite GLG LIFE and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.The idea behind GLG LIFE TECH and Corning Incorporated 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.| Corning Incorporated vs. Corporate Office Properties | Corning Incorporated vs. URBAN OUTFITTERS | Corning Incorporated vs. Tower One Wireless | Corning Incorporated vs. Infrastrutture Wireless Italiane |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |