Correlation Between GLG LIFE and VIAPLAY GROUP
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and VIAPLAY GROUP 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 VIAPLAY GROUP 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 VIAPLAY GROUP AB, you can compare the effects of market volatilities on GLG LIFE and VIAPLAY GROUP 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 VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and VIAPLAY GROUP.
Diversification Opportunities for GLG LIFE and VIAPLAY GROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and VIAPLAY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB 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 VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of GLG LIFE i.e., GLG LIFE and VIAPLAY GROUP go up and down completely randomly.
Pair Corralation between GLG LIFE and VIAPLAY GROUP
If you would invest 6.71 in VIAPLAY GROUP AB on August 25, 2024 and sell it today you would lose (1.04) from holding VIAPLAY GROUP AB or give up 15.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLG LIFE TECH vs. VIAPLAY GROUP AB
Performance |
| Timeline |
| GLG LIFE TECH |
| VIAPLAY GROUP AB |
GLG LIFE and VIAPLAY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and VIAPLAY GROUP
The main advantage of trading using opposite GLG LIFE and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, VIAPLAY GROUP 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.| GLG LIFE vs. INTER CARS SA | GLG LIFE vs. Motorcar Parts of | GLG LIFE vs. GRIFFIN MINING LTD | GLG LIFE vs. Geely Automobile Holdings |
| VIAPLAY GROUP vs. Uber Technologies | VIAPLAY GROUP vs. Tianjin Capital Environmental | VIAPLAY GROUP vs. GLG LIFE TECH | VIAPLAY GROUP vs. ZANAGA IRON ORE |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| 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 | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |