Correlation Between GLG LIFE and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Cogent Communications 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 Cogent Communications 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 Cogent Communications Holdings, you can compare the effects of market volatilities on GLG LIFE and Cogent Communications 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 Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Cogent Communications.
Diversification Opportunities for GLG LIFE and Cogent Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Cogent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications 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 Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of GLG LIFE i.e., GLG LIFE and Cogent Communications go up and down completely randomly.
Pair Corralation between GLG LIFE and Cogent Communications
If you would invest 5,009 in Cogent Communications Holdings on September 29, 2024 and sell it today you would earn a total of 2,141 from holding Cogent Communications Holdings or generate 42.74% 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. Cogent Communications Holdings
Performance |
| Timeline |
| GLG LIFE TECH |
| Cogent Communications |
GLG LIFE and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Cogent Communications
The main advantage of trading using opposite GLG LIFE and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| GLG LIFE vs. Tradeweb Markets | GLG LIFE vs. Fast Retailing Co | GLG LIFE vs. CarsalesCom | GLG LIFE vs. Entravision Communications |
| Cogent Communications vs. T Mobile | Cogent Communications vs. ATT Inc | Cogent Communications vs. Deutsche Telekom AG | Cogent Communications vs. Deutsche Telekom AG |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |