Correlation Between GLG LIFE and ETFS Coffee
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and ETFS Coffee 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 ETFS Coffee 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 ETFS Coffee ETC, you can compare the effects of market volatilities on GLG LIFE and ETFS Coffee 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 ETFS Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and ETFS Coffee.
Diversification Opportunities for GLG LIFE and ETFS Coffee
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and ETFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and ETFS Coffee ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS Coffee ETC 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 ETFS Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS Coffee ETC has no effect on the direction of GLG LIFE i.e., GLG LIFE and ETFS Coffee go up and down completely randomly.
Pair Corralation between GLG LIFE and ETFS Coffee
If you would invest 3,861 in ETFS Coffee ETC on August 28, 2024 and sell it today you would earn a total of 1,068 from holding ETFS Coffee ETC or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
GLG LIFE TECH vs. ETFS Coffee ETC
Performance |
| Timeline |
| GLG LIFE TECH |
| ETFS Coffee ETC |
GLG LIFE and ETFS Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and ETFS Coffee
The main advantage of trading using opposite GLG LIFE and ETFS Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, ETFS Coffee 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 ETFS Coffee will offset losses from the drop in ETFS Coffee's long position.| GLG LIFE vs. MAGIC SOFTWARE ENTR | GLG LIFE vs. Harmony Gold Mining | GLG LIFE vs. Columbia Sportswear | GLG LIFE vs. MCEWEN MINING INC |
| ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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