Correlation Between GLG LIFE and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Aurubis AG 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 Aurubis AG 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 Aurubis AG, you can compare the effects of market volatilities on GLG LIFE and Aurubis AG 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 Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Aurubis AG.
Diversification Opportunities for GLG LIFE and Aurubis AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Aurubis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG 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 Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of GLG LIFE i.e., GLG LIFE and Aurubis AG go up and down completely randomly.
Pair Corralation between GLG LIFE and Aurubis AG
If you would invest 7,755 in Aurubis AG on September 14, 2024 and sell it today you would earn a total of 695.00 from holding Aurubis AG or generate 8.96% 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. Aurubis AG
Performance |
| Timeline |
| GLG LIFE TECH |
| Aurubis AG |
GLG LIFE and Aurubis AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Aurubis AG
The main advantage of trading using opposite GLG LIFE and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.The idea behind GLG LIFE TECH and Aurubis AG 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.| Aurubis AG vs. Auto Trader Group | Aurubis AG vs. GLG LIFE TECH | Aurubis AG vs. TRADEDOUBLER AB SK | Aurubis AG vs. PKSHA TECHNOLOGY INC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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